Jan Soybeans closed 23 ¼ cents lower ($11.68 ½), March 23 ¼ cents lower ($11.69 ½) & July 22 cents lower ($11.64 ¾)
December Soybean Meal closed $5.4 lower ($393.1), March $6.0 lower ($389.2) & July $6.2 lower ($383.4)
December Soybean Oil closed 82 pts lower ($37.88), March 92 pts lower ($37.27) & July 80 pts lower ($36.92)
Weekly Soybean Export Inspections – 2.036 M T. vs. 1.800-2.200 M T. expected
Good rains over the past 3 days in Argentina and southern Brazil more than offset the dryness in central Brazil soybean growing areas at least for now. Forecasts suggest the southern areas will continue to see additional moisture for the next few days while the central areas of Brazil will continue with the ongoing dry bias. Beyond this week the southern areas will resume the dryer bias. Weekly export inspections were solid but I have to think the focus is shifting to sales and those have been declining. How much month end considerations were factored into today’s trade remains to be seen?
Interior cash soybean markets are seeing no change vs. last week’s late postings. The midday posting for the Gulf is almost undefined as bids are tough to find while offers read higher. Nearby spreads ran unchanged but as time went a bearish/widening bias especially vs. the new crop. Old crop meal spreads show a fractional bullish bias while bearish vs. the new crop. For what it is worth the July/Nov soybean spread is trying to advertise we may have made a top today.
Old crop soybeans balk at the $12.00 level. Old crop soybean meal balks at the $400 level. None of these technical considerations are friendly. Jan soybean oil will be advertising a top if it closes below the $37.25 level. SA weather considerations will continue to dominate the day to day focus. We’ll see if the new month (tomorrow) can negate today’s miserable performance but right now I don’t think I should hold my breath.
Daily Support & Resistance – 12/01
Jan Beans: $11.55 – $11.80
Jan Soy Meal: $384.0 – $395.0
Jan Soy Oil: $37.00 – $38.10
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.