Jan Soybeans closed 9 cents higher ($11.69 ½), March 8 ½ cents higher ($11.74 ½) & July 9 ¼ cents higher ($11.75 ¼)
December Soybean Meal expired $3.3 lower ($380.8), March closed $0.6 higher ($379.4) & July $1.2 higher ($382.7)
December Soybean Oil expired 53 pts higher ($40.11), March closed 46 pts higher ($38.52) & July 45 pts higher ($38.11)
Weekly Soybean Export Inspections – 2.368 M T. vs. 2.050-2.650 M T. expected
Weekly export inspections continue to be good as exporters fill previously established sales. As I mentioned earlier the weather in SA gets a two-sided conversation – are they getting enough rain for development or are amounts falling short of what’s needed. Soybean oil continues to be the product markets’ leader as palm oil continues to trade at 8+ year highs. Support is also coming from Argentina where labor strikes continue to the point its hard to find bean oil offers as well as bean meal offers. It should be noted this is not a big time of the year for Argentina crushing.
Interior Midwestern cash soybean markets are mostly steady with just a couple of locations citing minor basis increases. Not much happens with the Gulf soybean basis suggesting there is enough product in the pipeline to handle currents needs. Old crop soybean spreads ran fractionally mixed while old crop firms vs. the new crop. For what it is worth – the July/Nov spread has been in a downside correction mode since Nov 25th. $1.10 is showing up as recent support since correcting from $1.36. The fate/weather of the SA crop will dictate whether or not this spread has any remaining oomph to it.
The March soybean chart has been in a minor sideways just below recent highs dating back to Dec 1st. Today’s firmer price action is trying to suggest another test of resistance, $11.85 – $11.90 may be in the short term offering. Soybean oil continues to be the kingpin within the complex as it registers new highs with new high closes. It was hard to ignore the Dec contract expiring above the $40.00 level. I see nothing bearish at this point with the soybean oil market. Yes, soybean meal remains the laggard but it is holding where it has to in order to keep from having a bearish influence on the soybean market.
Daily Support & Resistance – 12/15
Mch Soybeans: $11.65 – $11.85
Mch Soy Meal: $378.0 – $388.0
Mch Soy Oil: $38.00 – $39.00 (?)
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