Soybeans Commentary


Soybeans – Just My Opinion

May Soybeans closed 5 ¼ cents lower ($8.36 ¾), July 6 cents lower ($8.45 ¾) & Nov 5 ¼ cents lower ($8.54 ½)

May Soybean Meal closed $0.4 lower ($291.8), July $0.5 lower ($296.1) & Dec $0.4 lower ($298.6)

May Soybean Oil closed 25 pts lower ($26.30), July 26 pts lower ($26.68) & Dec 28 pts lower ($27.52)

Weekly Soybean Export Sales – 244.7 K T. old crop vs. 300-600 K T. expected – 60.0 K T. new crop vs. 75-300 K T. expected

Weekly Soybean Meal Export Sales – 158.7 K T. old crop vs. 100-250 K T. expected – no new crop vs. 0-25 K T. expected

Weekly Soybean Oil Export Sales – 21.1 K T. old crop vs. 8-35 K T. expected – no new crop vs. 0-5 K T. expected

Weekly export sales were nothing to write home about. Soybean sales acted as a reminder that we have no Chinese business, not even new crop. Soybean meal tried to hold on to its recent short covering bounce but conviction appeared lacking. Soybean oil has its own problems stemming from lower palm prices and poor global bio-diesel demand.

Not much happens with the interior soybean basis. Locations involved with export appear to be a bit easier while processors are still trying to protect their margins. Processors are hiking meal offers touting better demand with the thought the rate of crush will slow in the coming weeks. Soybean spreads ran mixed as did meal spreads.

July soybeans appear destined to see what the suspected $8.40 support level looks like. Soybean meal is in a minor consolidation phase as it sits just above recent contract lows. Soybean oil, like soybeans, are grinding lower. The next level of support is 26.20 July.

Daily Support & Resistance – 4/17

July Soybeans – $8.40 – $8.52

July Soy Meal – $292.0 – $299.0

July Soy Oil – $26.20 – $27.20

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.