May Soybeans closed 4 ½ cents higher ($9.10 ½), July 4 ¾ cents higher ($9.24 ¼) & Nov 4 ½ cents higher ($9.44 ¾)
May Soybean Meal closed $3.7 higher ($315.3), July $3.7 higher ($318.9) & Dec $3.7 higher ($324.9)
May Soybean Oil closed 17 pts lower ($29.10), July 18 pts lower ($29.42) & Dec 17 pts lower ($30.14)
Weekly Soybean Export Sales – 399.6 K T. old crop vs. 600 k – 1.600 M T. expected – -64.4 K T. new crop vs. 0-150 K T. expected
Weekly Soybean Meal Export Sales – 97.4 K T. old crop vs. 150-400 K T. expected – no new crop vs. none expected
Weekly Soybean Oil Export Sales – 5.6 K T. old crop vs. 8-30 K T. expected – no new crop vs. none expected
Technical considerations along with the strength in the corn market influenced the soybean and soybean meal markets higher on Thursday. I have to think the majority of the buying was speculative short covering. I’m hesitant to say all of the flooding talk prompted the higher prices as any major delays in planting corn usually gets you more soybean acres. Weekly export sales of soybeans and products were nothing short of puny. Since the WH said yesterday they were going to leave tariffs of soybeans in place even if we get a deal with China its hard to imagine any major purchases on their part at least involving old crop. Long story short – the soybean market goes along for the ride.
Soybean processors continue to show the best basis in the interior. River locations continue to soften. The Gulf for soybeans continues to be soft as well. Soybean spreads ran steady to mixed out to January of 2020. Interior meal offers rise out west where flooding is most prevalent. The Gulf for meal continues to show a firm undertone. Meal spreads were mostly flat out to January 2020.
As I mentioned earlier technical considerations was a good part of Thursday’s firm price action. I have to think that if the feed grain markets continue higher there will be some minor spillover influence to the soybean market. From a fundamental standpoint I don’t see that much upside influence. I may be wrong but being long feedgrains/short oilseeds seems to the way to go.
Daily Support & Resistance for 03/22
May Soybeans: $9.02 – $9.17
May Soybean Meal: $310.0 – 318.0
May Soybean Oil: $28.90 – $29.70
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