August Soybeans closed 1 ¼ cents lower ($8.80 ¾), Sept 1 ½ cents lower ($8.74 ¾) & Nov ¾ cent lower ($8.78)
August Soybean Meal closed $1.6 lower ($280.7), Sept $1.5 lower ($283.2) & Dec $1.8 lower ($288.4)
August Soybean Oil closed 18 pts lower ($31.52), Sept 12 pts higher ($31.22) & Dec 15 pts higher ($31.28)
Weekly Soybean Export Sales – 345.2 K T. old crop vs. 200-550 K T. expected – 1.405 M T. new crop vs. 600 K – 1.200 M T. expected
Weekly Soybean Meal Export Sales – 328.3 K T. old crop vs. 100-450 K T. expected – 203.9 K T. new crop vs. 200-300 K T. expected
Weekly Soybean Oil Export Sales – 24.4 K T. old crop vs. 5-30 K T. expected – 11.1 K T. new crop vs. 0-5 K T. expected
USDA announces 126 K T. new crop soybeans sold to China
Solid looking weekly export sales (based on expectations) for both soybeans and soybean meal offered little sustaining inspiration to today’s trade. Soybean oil continues to hold its own from the better usage ideas. Current weather and forecasts still do not offer anything threatening to the developing soybean crop. Taking this into consideration along with the already good looking conditions the trade will be considering how much of bump higher the USDA will hike new crop supply and whether or not any increases in demand will be enough to offset.
The interior Midwestern soybean basis has a mixed look to it today. Where processors are taking maintenance downtime the basis is softer. Both Savanna, Il and Davenport, IA appear to be reaching for soybeans. The Gulf overall continues to maintain a firm bias. Both August and Sept lose to the November. After that soybean spreads ran fractionally mixed. Domestic offers for cash soybean meal don’t do much while the export market at the Gulf continues to firm. Soybean meal spreads ran mixed with only fractional changes.
November soybean charts are still pointing lower after failing to sustain the early export sales induced rally. $8.70-$8.65 remains in the near term outlook. December meal came within 2 ticks of its contract low and is not showing any signs of rejecting this level. December soybean oil still has strong bias but resistance between $31.50 and $32.10 is still there.
Daily Support & Resistance – 8/07
Nov Soybeans: $8.70 – $8.85
Dec Soybean Meal: $285.0 – $292.5
Dec Soybean Oil: $30.80 – $31.80
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.