Jan Soybeans closed 23 ¼ cents higher ($12.43 ¼), March 23 ½ cents higher ($12.47 ½) & July 21 cents higher ($12.40 ¼)
Jan Soybean Meal closed $6.8 higher ($412.3), March $6.8 higher ($412.1) & July $8.4 higher ($407.9)
Jan Soybean Oil closed 11 pts lower ($39.96), March 12 pts lower ($39.55) & July 1 pt lower ($38.91)
Weekly Soybean Export Inspections – 2.532 M T. vs. 1.500-2.400 M T. expected
After a volatile Sunday session (a 24 cent range and a 20 cent range from 7:30 AM to 7:45 AM) soybean futures spent the day session grinding into new high ground. Soybean meal was the stalwart of the products as it takes its cue from the ongoing labor strike in Argentina. Soybean oil took its weaker cue from the lower energy markets. Over the weekend we saw decent rains in southern Brazil and northern Argentina. Weather patterns are now going to shift to the north (the Brazilian states of Mato Grosso do Sul and Mato Grosso) that will feature almost daily precipitation while the south moves into a sustained warm and dry period. Weekly soybean export inspections were nothing short of outstanding. Be it known that shipments are 58% of current sales and current sales are 90% of current projections. One would think that with these current percentages price rationing going forward will become a must.
Most interior soybean basis reads steady to higher. The midday posting at the Gulf moves higher. Bull spreads led by the March contract were the order of the day. The July/Nov spread gains 11 cents to close at $1.49. Last Monday this spread closed at $1.16. I’m not seeing much change with the cash meal offers. Meal spreads ran a bit different from the soybean spreads as we saw a bearish slant out to August and then bull spreads took over.
Despite the Sunday night volatility soybeans and soybean meal continue to move higher. The higher prices go volatility will become more common place – get used to it. Even though bean oil prices finished a bit easier the overall price action is positive given prices finished 80 pts up from the Sunday night low. When March bean prices closed above $12.00 last week that targeted the $12.50 level (we’re there). The current rally in March meal is targeting the $420.0 level. If and when the meal market reaches its target I’ll re-assess both meal and soybeans.
Daily Support & Resistance – 12/22
March Beans : $12.30 – $12.60
March Meal: $408.0 – $420.0
March Bean Oil: $39.00 – $40.00 (?)
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