Soybeans Commentary


Soybeans – Just My Opinion

Nov Soybeans closed 2 ¾ cents lower ($10.19 ¾), March 2 cents lower ($10.19) & July 1 ¾ cents lower ($10.17)

October Soybean Meal closed $3.9 higher ($337.3), Dec $2.9 higher (341.0)  & March $0.2 lower ($335.0)

October Soybean Oil closed 60 pts lower ($33.67), Dec 60 pts lower ($33.60) & March 51 pts lower ($33.77)

USDA announces Soybean Export Sales – 266 K T. sold to China; 264 K T. sold to Unknown

The Monday night session brought us a two-sided soybean trade. Early follow through selling appeared to be well received while attempts to rally found some profit taking. The day session’s opening brought us a surge higher in response to the announced export sales. That surge higher however failed to be sustained. The balance of the session was spent grinding to modestly lower on the day. Soybean meal was the stalwart of the complex as continued crusher downtime supported the nearby contracts. Soybean oil took a noticeable hit as competing veg oils ( Palm & Sun) were under pressure.

Soybean charts appear to have entered a correction phase. This is based on the market’s inability to sustain the day session’s opening rally. The rally stumbled at the mid-high $10.30’s (Nov). This initial resistance level was established from Friday’s price action and the early Sunday night price action. Initial support is the $10.15 level which was honored on attempts to sell-off. Better support comes into view closer to the $10.05 level. Dec meal made new highs on the day session’s opening surge. Those levels were rejected but not to the extent that would suggest the meal market’s rally is coming to an end. Its my guess that once processors come back from their sessional maintenance downtimes we’ll see corrections in the price. Soybean oil corrects hard as it is down nearly 200 pts from Friday’s high to today’s low. It is my thought that Dec bean oil should try and realize some support as it gets closer to $33.00.

Daily Support & Resistance – 9/23

Nov Beans: $10.10 ($10.05) – $10.30

Dec Bean Meal: $335.0 – $344.0

Dec Bean Oil: $33.10 – $34.25 

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