Jan Soybeans closed 17 ½ cents higher ($12.01 ¼), March 17 ½ cents higher ($12.05 ½) & July 16 cents higher ($12.03 ½)
Jan Soybean Meal closed $3.4 higher ($397.9), March $3.5 higher ($397.4) & July $3.3 higher ($392.8)
Jan Soybean Oil closed 88 pts higher ($39.93), March 78 pts higher ($39.50) & July 62 pts higher ($38.78)
Weekly Soybean Export Sales – 922.3 K T. old crop vs. 400-900 K T. expected – 94.0 K T. new crop vs. none expected
Weekly Soybean Meal Export Sales – 261.2 K T. old crop vs. 150-350 K T. expected – no new crop vs. none expected
Weekly Soybean Oil Export Sales – 7.6 K T. old crop vs. 5-30 K T. expected – no new crop vs. none expected
Rebounding weekly soybean export sales, iffy weather for SA (dry bias continues), the ongoing labor strike in Argentina, the lower US Dollar and lastly thoughts that China is starting to look at US soybeans for February vs. normally Brazil all worked together to push March soybeans up through the $12.00 level. Soybean oil was the products’ leader as it moved into new high ground. Soybean meal was no slouch but it still honors the psychological resistance at $400.0 (but not for long in my opinion).
Most interior soybean basis locations read steady. There are a couple of river locations that read higher. The Gulf basis for soybeans is mostly steady. Soybean spreads within the old crop ran steady to better while old crop is a noticeable gainer vs. the new crop. Soybean meal spreads ran mixed up front and the bullish bias was noted as time went on.
As far as I’m concerned the soybean market is signaling the beginning of a new leg higher with today’s close over $12.00. Soybean oil has already started its new leg higher while the meal market is not quite there – yet.
Daily Support & Resistance – 12/18
Mch Soybeans: $11.96 – $12.16 (?)
Mch Soy Meal: $394.0 – $403.0 (?)
Mch Soy Oil: $39.00 – $40.00
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