Nov Soybeans closed 8 cents higher ($10.72), March 5 ¾ cents higher ($10.58 ¾) & July 6 cents higher ($10.55 ¾)
December Soybean Meal closed $6.9 higher ($378.8), March $5.0 higher ($364.0) & July $3.8 higher ($354.6)
December Soybean Oil closed 11 pts lower ($33.20), March 22 pts lower ($33.08) & July 27 pts lower ($33.07)
Weekly Soybean Export Sales – old crop vs. 1.500-2.500 M T. expected – new crop vs. none expected
Weekly Soybean Meal Export Sales – old crop vs. 100-350 K T. expected – new crop vs. none expected
Weekly Soybean Oil Export Sales – old crop vs. 0-30 K T. expected – new crop vs. none expected
Meal’s the Deal! Soybean meal continues to be top performer within the soybean complex. Cash meal markets are strong for both domestic and export markets. It doesn’t help when a crushing facility in Argentina goes down (explosion) that could keep it out of operation for weeks to come. Cash markets for soybeans continue to be strong as processors are vying with exporters for origination in the US interior. The export market for soybeans is equally strong. Needless to say bull spreads continue to perform. Soybean oil tried to rally in the overnight session but got bogged down by the sharply lower energy markets during the day session.
November soybeans come within a couple of cents of their recent high, $10.79 ¾. The last week and a half of price action still resembles an upflag. Closes below $10.50 still looks like a jumping off point for recent buyers. December meal once again posts new highs with new high closes. Nothing bearish about that. As much as I think meal prices are in some significant looking resistance based off of the weekly charts the daily price action stays impressive looking. The last month of so of price action in the December soybean oil chart is seeing higher lows along with lower highs, triangulating. I’m not sure which way it will pop out of this formation. For what it’s worth the meal/oil spread on weekly charts is starting look rather stretched out. Since early August meal has gained about $9.0 K a contract vs. bean oil.
Tomorrow is export sales day and once again the trade is expecting to see strong soybean sales once again. Failure to do so just may prompt some profit taking especially if SA forecasts continue to suggest sustained beneficial weather.
Daily Support & Resistance – 10/22
Nov Soybeans: $10.55 – $10.80 (?)
Dec Soy Meal: $369.0 – ???
Dec Soy Oil: $32.75 – $34.00
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.