Jan Soybeans closed 4 cents higher ($12.47 ¼), March 2 ½ cents higher ($12.50) & July 4 cents higher ($12.44 ¼)
Jan Soybean Meal closed $2.7 higher ($415.0), March $2.2 higher ($414.3) & July $1.9 higher ($409.8)
Jan Soybean Oil closed 59 pts higher ($40.55), March 41 pts higher ($39.96) & July 16 pts higher ($39.07)
Weekly Soybean Export Sales – old crop vs. 550-800 K T. expected – new crop vs. 0-50 K T. expected
Weekly Soybean Meal Export Sales – old crop vs. 200-350 K T. expected – new crop vs. none expected
Weekly Soybean Oil Export Sales – old crop vs. 5-15 K T. expected – new crop vs. none expected
The Monday night trade brought us two-sided price action. The Tuesday day session brought us more of the same. The trade is dealing with the ongoing labor strikes in Argentina and the dryness in Argentina vs. the forecasted rains developing in the Brazilian states of Mato Grosso and Mato Grosso do Sul. Southern Brazil (Rio Grande Do Sul and Parana) have moved into a drying bias. When all was said and done the complex registers new highs and new high closes. For what it is worth – Aprosoja of Brazil (the Brazilian version of the American Soybean Association) is suggesting Brazil’s soybean crop is now 127 M T.
The interior Midwestern soybean basis runs steady to higher. River locations are showing the day’s basis improvements. The Gulf for soybeans jumps 6 cents at the midday posting. Interior offers to sell soybean meal are mixed while Gulf offers are moving higher. Bull spreads were working throughout the complex. It seems as if the July/Nov soybean spread is becoming its own separate market as July soybeans show the best strength while the November contract is one of the weakest new crop contracts.
Nothing bearish with price action here. The complex tries to sell off and can’t stay down. Since a good portion of the recent rally is about the Argentine labor strike we have to be wary if and when the strike is called off. I would suggest trailing sell stops on any recent purchases. Until then we let the good times roll.
Daily Support & Resistance – 12/23
March Beans : $12.40 (?) – $12.60 (?)
March Meal: $408.5 – $420.0
March Bean Oil: $39.25 – ???
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