Jan Soybeans closed 10 ½ cents higher ($11.91 ½), March 11 ¼ cents higher ($11.92 ½) & July 12 ½ cents higher ($11.86 ¼)
December Soybean Meal closed $0.2 higher ($394.9), March $2.6 higher ($392.8) & July $3.8 higher ($388.1)
December Soybean Oil closed 11 pts lower ($38.55), March 22 pts higher ($38.21) & July 34 pts higher ($37.73)
Weekly Soybean Export Inspections – 2.009 M T. vs. 1.500-2.500 M T. expected
Continued hot & dry through most of Brazil and Argentine over the weekend has Jan soybeans tapping at the $12.00 level (19 cents higher). This was done in the first few minutes of the Sunday night session. The balance of the night session traded in a 5 cent range 12-17 cents higher. Early in the day session brought us a round of profit taking that took Jan soybeans down to 5 cents higher before rebounding to 12 cents higher on the day. The balance of the day was spent trading between 8 cents and 13 cents higher. Midday it was reported that late last week China washed out a number of Dec/Jan cargoes citing poor crush margins. That explains the past few sessions where the days’ highs were made early and then failed to follow through. Weather in SA is expected to continue with its hot & dry bias for most of the central soybean regions while some scattered moisture may move into the southern areas over the next few days.
Interior soybean basis levels run steady to mixed vs. late last week’s postings. The Gulf for soybeans continues to rebound following last week’s early sell off. Old crop soybean spreads were under modest pressure out to July. Old crop continues to gain on the new crop. Meal spreads ran the same the same route as the soybean spreads. I mentioned earlier there were reports of China washing out a number of Dec/Jan cargoes due to tightening crush margins. The Jan Board crush lost nearly 10 cents today down to 94 cents. In early November the Jan Board crush traded as high as $1.35.
Jan soybeans trade $12.00 and then give us a modest retreat. What do we do for an encore? It was a bit unsettling that the nearby product markets were unable to sustain their early rallies. Weather considerations for SA should continue to dominate the daily discussion.
Daily Support & Resistance – 11/24
Jan Beans: $11.80 – $12.00 (?)
Jan Soy Meal: $389.0 ($385.0) – $398.0
Jan Soy Oil: $37.50 – $39.00
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