March Soybeans closed 1 ½ cents higher ($9.21 ¾), July 1 ¾ cents higher ($9.49 ¼) & Nov 2 ½ cents higher ($9.63)
March Soybean Meal closed $0.5 lower ($309.0), July $0.6 lower ($316.9) & Dec $0.2 lower ($323.0)
March Soybean Oil closed 52 pts higher ($30.90), July 51 pts higher ($31.49) & Dec 45 pts higher ($31.94)
USDA announces 586.0 K T. of soybeans sold to China (523.0 K T. old crop, 63.0 K T. new crop) – 182.0 K T. of soybeans sold to Unknown
Over the past two days the USDA has announced 4.257 M T. of soybeans sold. Soybeans have gone virtually nowhere with this news. Soybean meal continues to show a negative bias and bean oil is at its best price level going back to last June. As I mentioned earlier the “supply” data from the USDA on Friday will be current. The “demand” data will be questionable. In addition to all of this data CONAB will be updating Brazilian soybean production. Their last number was 118.8 M T. Given reports from other sources it is not out of the realm of possibility they could drop production another 3-5 M T.
With the exception of Burns Harbor (-5 cents) most other interior soybean basis locations are running steady if not better. River locations that feed to the Gulf have shown the best increases over the past number of days. The Gulf continues to be firm from the recent sales as well as lingering logistical problems. Despite what appears to be better cash markets soybean spreads show us very little in that regard; steady at best up front while losing to the deferreds. Offers to sell cash soybean meal continue to be in the doldrums. Meal spreads ran flat out to Sept and then lose ground October forward.
So here we sit and wait for the USDA on Friday. The soybean price is quiet not far from its recent upper end. The meal market flirts with its recent lower end and bean oil is a high flying affair. For what it is worth the March meal / March bean oil spread has moved about $3000 since the second week of the New Year.
Daily Support & Resistance for 02/07
Mch Soybeans: $9.12 – $9.29
Mch Soybean Meal: $308.0 (?) – 312.5
Mch Soybean Oil: $30.30 – $31.40
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.