Sept Soybeans closed ½ cent higher ($9.12 ½), Nov ¼ cent higher ($9.14) & March ½ cent higher ($9.21 ¾)
Sept Soybean Meal closed $0.5 lower ($295.7), Dec $0.5 lower ($302.5) & March unchanged ($303.6)
Sept Soybean Oil closed 9 pts higher ($31.67), Dec 7 pts higher ($31.97) & March 9 pts higher ($32.16)
USDA announces soybean sales – 192 K T. China
Weekly Soybean Export Sales – old crop vs. 300-800 K T. expected – new crop vs. 2.000-3.100 M T. expected
Weekly Soybean Meal Export Sales – old crop vs. 100-300 K T. expected – new crop vs. 25-150 K T. expected
Weekly Soybean Oil Export Sales – old crop vs. 5-30 K T. expected – new crop vs. 5-30 K T. expected
Soybeans hang in there but that about it as we traded both sides of unchanged (easier at night, firmer early in the day session) before finishing unchanged. Ongoing dryness in the Midwest couple with export optimism is the strength while strong looking yield potential and forecasts for beneficial moisture by month’s end acts as resistance. The trade is looking for big export sales in the morning so that adds to today’s support.
Interior cash soybean markets (basis) have a mixed look. Burns Harbor, IN (a CBOT delivery point) is backing off its basis while Decatur, IL appears to be reaching. Soybean spreads are quiet. The Gulf is quite strong citing a lack of product. It seems the producer is content to move his old crop corn but not his old crop soybeans. He wants to see his new crop fill out before he moves his old crop and the current spate of dryness keeps him for doing that.
Soybean oil makes new highs for its rally but the intra-day price action suggests it may be running out of steam. The price action for soybean meal suggests some minor downflagging from Monday’s interim highs. November soybeans honors the suspected technical resistance at the $9.20 level. The best looking near term support is the gap from Friday at $8.99.
Daily Support & Resistance – 8/20
Nov Soybeans: $9.05 – $9.25
Dec Soybean Meal: $298.0 – $310.0
Dec Soybean Oil: $31.35 – $32.25
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.