Jan soybeans close 3 ¾ cents lower ($9.85 ¾), March 3 ½ cents lower ($9.94 ½) and July 2 ¼ cents lower ($10.08 ½)
Dec Meal closes $1.7 lower ($308.4), Jan $1.6 lower ($310.7) and March $1.4 lower ($313.0)
Dec Bean Oil closes 11 pts lower ($34.21), Jan 10 pts lower ($34.36) and March 9 pts lower ($34.61)
USDA announces 165 K T. soybeans sold to China
Weekly Export Sales – Soybeans – old crop vs. 1.200-1.500 M T. expected; new crop vs. 0-100 K T. expected – Soybean Meal – old crop vs. 150-350 K T. expected; new crop vs. none expected – Soybean Oil – old crop vs. 10-40 K T. expected; new crop vs. none expected
Flat price tries to follow through from Tuesday’s rally and fails to do so. Low volatility here suggests the market will struggle to follow through in either direction especially on the upside. Yes, we are selling soybeans to China almost every day but the market action tells us we have the product to sell and then some. The meal market acts as a drag on the bean market as the US is currently flush and the export market is slight at best. Bean oil continues to follow the whims of the outside veg oils and currently they are on a backing and filling mode. For the soybean market to sustain a rally, given the current supply-demand situation, it will take weather worries out of SA and currently we have none.
Most interior cash soybean markets continue to show a bias of improvement as harvest is over. The gulf market for soybeans finally shows some improvement but not enough to be a market factor. Soybean spreads ran softer on the day all the way out to the new crop. Offers to sell cash meal continue to have a depressed look. With that said meal spreads continue to be soft as well.
The daily price trend still reads lower but like corn the rate of descent has slowed. That’s not to say we can’t move yet lower but it will come in a grinding type motion. Tomorrow is Thursday and that means weekly export sales – we’ll take our cue from those and whatever the outside markets are doing and those outside markets do include the Chinese futures’ markets (I say that because in recent days their trade has been rather hectic to say the least).
Jan Beans: $9.78 – $9.95 Dec Meal; $305.00 (?) – $314.5 Dec Bn Oil: $33.75 ($33.50) – $34.80 ($35.00)
Soybeans Commentary
