Soybeans Commentary

storck

Soybeans – Just My Opinion

Nov Soybeans closed 1 ¾ cents higher ($10.73 ¾), March unchanged ($10.58 ¾) & July unchanged ($10.55 ¾)

December Soybean Meal closed $3.6 higher ($382.4), March $0.9 higher ($364.9) & July $1.0 lower ($353.6)

December Soybean Oil closed 49 pts higher ($33.69), March 35 pts higher ($33.43) & July 29 pts higher ($33.36)

Weekly Soybean Export Sales – 2.225 M T. old crop vs. 1.500-2.500 M T. expected – no new crop vs. none expected

Weekly Soybean Meal Export Sales – 321.9 K T. old crop vs. 100-350 K T. expected – no new crop vs. none expected

Weekly Soybean Oil Export Sales – 37.0 K T. old crop vs. 0-30 K T. expected – -0.2 K T. new crop vs. none expected

USDA announces Soybean Export Sales – 152.4 K T. to Mexico, 132.0 K T. too unknown

Did we just see some sort of exhaustion for the current rally in soybeans and soybean meal? Exports were strong, cash markets (both beans and meal) continue to be strong both domestic and export. The entire soy complex started like gangbusters for the day session. The highs of the day were made relatively early for both meal and soybeans. The balance of the session was spent backing and filling most of that early rally. Soybean oil was able to hold onto its gains due to the rebound in energy prices as well inter-market spread liquidation (long meal/short bean oil).

As I mentioned cash markets for both soybeans and soybean meal remain strong, both domestic and export. Despite the modest sell off in the flat price bull spreads continue to work. As long as the bull spreads continue to work any decline in the flat price will be considered to be a correction not necessarily a top.

If today’s price action is in reality a sign of exhaustion $10.50 will be first support for November beans. Closes below $10.50 could easily suggest something closer to $10.35 if not $10.25. The last notable correction we saw was 61 cents.  A similar correction would suggest something near $10.25. Notable corrections in the meal market have been around $19.00 to $20.00. Soybean Oil continues to triangulate; a succession of higher lows and lower highs.

Daily Support & Resistance – 10/23

Nov Soybeans: $10.60 – $10.82

Dec Soy Meal: $378.0 – $388.0

Dec Soy Oil: $32.80 – $34.25

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.