Soybean Commentary
July Soybeans 4 ½ cents higher ($9.11 ¼), Aug 4¾ cents higher ($9.16) and Nov 3 ¾ cents higher ($9.17 ½)
July Meal closes $0.1 lower ($294.0), Aug $0.2 lower ($295.8) and Dec $0.2 lower ($297.8)
July Bean Oil closes 56 pts higher ($32.08), Aug 55 pts higher ($32.20) and Dec 55 pts higher ($32.54)
The soybean market sees some minor short covering stemming from last night’s condition rating falling short of expectations. Like we saw in corn the closes were less than enthusiastic as were 7 cents or so off of the day’s highs actually favoring the lows of the day. The forecasts that I outlined in the corn comment added to the early strength. It was a bit disconcerting that the bean oil market was the primary influence from the product markets. If the soybean market is going to sustain a noticeable rally the soybean meal market needs to participate. On Tuesday the soybean meal market acted as a drag on the soybean market.
There are a few changes in the interior cash soybean market. The Ohio River is soft, processor bids are frim, the Illinois River is a bit better and the mid-Miss appears to be a bit easier. The Gulf is flat as it hovers above last week’s lows. Old crop did manage to gain on the new crop. The cash meal market remains ugly looking. Spreads there were fractionally better.
Unless we see dramatic changes to the forecasts over the next couple of days I’m not looking past continued consolidation efforts in the soybean and soybean meal markets at least until we see what the USDA has to say on Friday. As of this writing the daily price action in the soybean and soybean meal markets resemble minor upflags. Soybean oil is advertising it is a trading range affair.
Daily Support & Resistance for 06/28
Aug Beans: $9.04 (?) – $9.26
Nov Beans: $9.07 (?) – $9.27
Aug Meal; $292.0 – $299.5
Aug Bn Oil: $31.80 – $32.60
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