Nov Soybeans closed 22 ½ cents higher ($10.44), March 17 cents higher ($10.35 ¼) & July 9 cents higher ($10.30 ¾)
October Soybean Meal closed $10.7 higher ($354.3), Dec $9.5 higher ($355.5) & March $5.8 higher ($348.4)
October Soybean Oil closed 48 pts higher ($33.29), Dec 53 pts higher ($33.09) & March 45 pts higher ($33.17)
USDA Announces Soybean Export Sales – 154.4 K T. sold to Unknown
Soybeans vault higher prompted by delayed Brazilian planting due to dryness. Supposedly seasonal rains are forecasted to show up by mid-month. Trade talk suggests new crop soybeans from Brazil won’t be available for export until late January at the earliest. Soybean meal was the leader of the products as it should be for every good bull soybean market. Soybean oil was no slouch as it follows through from yesterday’s interim reversal.
Only scattered easiness is being seen with the interior soybean basis. I’m told the Illinois River opening has been delayed for two more weeks. Processors in those areas have a captive audience and they are not paying up. I did see what looked like some panic buying earlier in the day for the Nov/Jan bean spread; it traded into a 2 cent inverse ( a 5 ½ cent rally) before backing off as the day went on. The Gulf firms at its midday posting. Offers to sell cash soybean meal in the interior are firming while offers at the Gulf are hard to find. Needless to say bull spreads were working throughout the complex.
Nothing bearish about the price action in the soybean complex; maybe a bit of intra-day, inter-day overbought. AS I mentioned in the corn comment given where we closed in respect to the day’s highs (off 9 ¾ cents) we may have seen the best we’re going to see until we see what the USDA has to say on Friday. The average trade guess for yield is 51.6 bpa (down 0.3 bpa), production 4.282 billion bu. (down 30 million), harvested acres 82.922 million (down 98 K) and carryout 369 million bu. (down 91). The World soybean carryout is expected to decline 2.23 M T. to 91.36 M T.
Daily Support & Resistance – 10/07
Nov Beans: $10.35 – $10.50
Dec Bean Meal: $349.5 – $358.5
Dec Bean Oil: $32.60 – $33.50
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 eclipse the high side of expectations. results.