Soybean Commentary
Sept Soybeans close 1 ¼ cents higher ($9.33 ¾), Nov 1 ¼ cents higher ($9.37 ½) and March 1 cent higher ($9.54)
Sept Meal closes $0.5 lower ($295.3), Dec $0.3 lower ($298.7) and March $0.1 lower ($302.3)
Sept Bean oil closes 26 pts higher ($34.06), Dec 25 pts higher ($34.42) and March 22 pts higher ($34.79)
Soybeans continue to be caught between soft meal prices and firm bean oil prices. Bean oil continues to get its strength from competing veg oils as well as the idea the US government will be soon imposing duties on imported bio-diesel. I have to think that in recent days the soybean crops in Illinois and Iowa have had some tremendous positive impact from recent rains while points east continue to languish. I’m told US origin for both beans and soybean meal are the best out there. That appears to be keeping the bean and meal markets alive but that’s about it.
The interior cash markets for soybeans continue to show a firming bias. The Gulf is easing in response to the Delta harvest resuming. Soybean spreads ran steady upfront firmed fractionally vs. the deferred contracts. Offers to sell cash meal continue to search for buyers with little success. Meal spreads ran fractionally softer.
The soybean price action still resembles an upflag within the major downtrend. Soybean meal has gone into a minor consolidation phase at recent lows. Soybean oil continues to grind higher within its broader trading range affair. As of this writing it looks like the aforementioned price action will continue over the near term.
Daily Support & Resistance for 08/23
Nov Beans: $9.30 – $9.49
Dec Meal; $295.0 – $303.0
Dec Bn Oil: $33.90 – $34.80
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