Soybean Commentary
Nov Soybeans close ¾ cent lower ($9.65 ¼), March¼ cent lower ($9.85 ½) and July ¼ cent higher ($10.03 ¾)
Dec Soybean Meal closes $1.3 lower ($314.9), March $1.1 lower ($319.8) and July $1.1 lower ($324.7)
Dec Soybean Oil closes 5 pts higher ($33.15), March 5 pts higher ($33.56) and July 4 pts higher ($34.00)
USDA announces 264.0 K T. soybeans sold to China; 132.0 K T. soybeans sold to Unknown
It was a pretty much a “nothing trade” in the soybean complex (just a 4 cent range in soybeans and not even a $2 range in soybean meal) on Wednesday as trade participants are willing to “wait and see” as to what the USDA may have to say tomorrow. USDA announcements on export sales fell on deaf ears. Ongoing dryness in the Brazilian state of Mato Grosso continues to be a supporting issue when the flat price tries to sell off. Can the USDA say anything of consequence that gets us out of the current trading affair? That remains to be seen as the price action of the complex appears to be very middle of the road.
Processor bids are mostly unchanged. River bids continue to recover from last week’s logistical problems but those are being offset by declining Gulf bids. Offers to sell cash soybean meal remain depressed. Both soybean and soybean meal spreads continue to inch wider.
As I mentioned earlier the complex’s respective prices appear to be middle of the road. With that said I’m sure the daily participants will try to goose the market in whatever direction the USDA data may suggest. I’m willing to “wait and see” at this point in time.
Daily Support & Resistance for 10/12
Nov Beans: $9.50 (?) – $9.80 (?)
Dec Meal; $305.0 – $328.0
Dec Bn Oil: $32.25 – $34.25
The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.