Nov Soybeans closed 5 ½ cents lower ($10.82 ¼), March 8 ¼ cents lower ($10.60 ¾) & July 6 ¾ cents lower ($10.51 ¾)
December Soybean Meal closed $5.6 lower ($384.0), March $4.3 lower ($364.8) & July $2.8 lower ($349.9)
December Soybean Oil closed 35 pts lower ($34.11), March 29 pts lower ($33.67) & July 27 pts lower ($33.40)
The idea of better/beneficial moisture for SA weighs on prices. Nov and Jan soybeans make new highs for the ongoing rally yet they close lower. March forward contracts failed to make new highs as the idea of better weather for SA weighs the heaviest here. Dec and Jan meal go the route of their respective soybean contracts; new highs with a lower close. March meal is now looking a double top against $370.5. May forward meal contracts continue to honor the suggested reversals that were scored last week. I’m not sure what to say about soybean oil other than it followed the crowd today.
The interior cash soybean markets continue to show a firming bias. The Gulf stays strong as well. This continues to support the nearby spreads. March soybean forward spreads are starting to develop a bearish bias reflecting the potential of SA supply in this time frame. Both the interior and export basis for meal stay strong looking but it was no help to the spreads today as profit taking took over. The word in the cash meal markets was “routine”.
Given the length of the long positions that the spec/managed sectors are carrying it is my option that today’s suggested reversals deserve some respect. As often said that the bull needs to be fed everyday there was not that much feeding done today. Until the trade feels the SA new crop is going to be successful I will not look past corrections vs. saying the complex is topping out. Corrections in the soybean market can range from 30 cents to 60 cents. Corrections in the soybean meal market can range from $20.0 to $30.0.
Daily Support & Resistance – 10/28
Jan Soybeans: $10.62 – $10.85
Dec Soy Meal: $377.0 – $387.5
Dec Soy Oil: $33.50 – $34.50
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 future results.