Jan soybeans close 5 ¼ cents higher ($9.89 ½), March 5 ½ cents higher ($9.98) and July 5 ¼ cents higher ($10.10 ¾)
Dec Meal closes $0.2 higher ($310.1), Jan $0.2 higher ($312.3) and March $0.6 higher ($314.4)
Dec Bean Oil closes 26 pts higher ($34.21), Jan 28 pts higher ($34.46) and March 30 pts higher ($34.70)
USDA announces 121.5 K T. soybeans sold to China; 126 K T. soybeans sold to unknown
NOPA October crush – 164.6 million bu. vs. 160.4 expected – Soybean Oil Stocks – 1.343 billion lbs. vs. 1.323 expected
After Monday’s technical price action suggested it was time for some upside backing and filling of the recent sell-off the market did just that. The USDA continues to announce daily sales of soybeans. The NOPA crush data was deemed supportive as they came in with 4 million bu. more crushed that anticipated. Bean oil gets a bid from the higher crude oil market as well as bean oil stocks not rising as great as one might have thought given the higher than expected crush number. The meal market languishes with the higher than expected crush number but manages to stand in. Overall SA growing conditions appear to be pretty good. Longer term forecasts do hint at some dryness developing in the southeastern reaches of Brazil (RGDS).
Interior cash soybean markets gave us a mixed to steady look on Tuesday. The Ohio River was a touch easier, Decatur, Il noticeably better and the Illinois river mixed as one location ran a bit better while another was a bit easier. The Gulf continues to show a soft look and that is in response to weaker than expected freight rates. Cash offers to sell meal continue to look for a home. Soybean spreads saw little change on the day while meal spreads continue with their recent soft look.
Like corn the daily trend in the soybean complex still reads lower but the rate of descent has definitely slowed. I’m not sure we have any sustainable upside potential over the near term. For that to happen SA weather has to turn sour. For the time being I’m content to trade beans and meal as if they are trading range affairs fading inter-day extremes.
Jan Beans: $9.83 – $9.99 ($10.03) Dec Meal; $306.00 – $314.5 Dec Bn Oil: $33.75 ($33.50) – $34.80
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