March Soybeans closed 26 ¾ cents higher ($13.70 ¼), July 24 cents higher ($13.52 ½) & Nov 18 ¼ cents higher (11.48 ½)
March Soybean Meal $6.9 higher ($436.5), July closed $7.3 higher ($429.8) & Dec $5.3 higher ($372.9)
March Soybean Oil closed 97 pts higher ($43.91), July closed 73 pts higher ($42.45) & Dec 67 pts higher ($39.54)
Soybean harvest in Brazil continues to see delays. One, the crop was planted late and now excessive rain in the harvest ready areas. Next week, February 1st, there is a nationwide trucker strike scheduled for Brazil. China will be out of the game during their New Year celebration that is scheduled to start February 12th. Will these two factors create a rush of buying from the Chinese? This remains to be seen. Without the rally in corn I doubt we would have seen today’s sharp strength.
The interior Midwestern soybean basis has a steady/mixed look to it following last week’s general easing. The Ohio River continues to decline while locations on the Illinois River improve. The midday Gulf posting for soybeans runs unchanged with recent easing. Soybean spreads were unchanged upfront then bull spreads took over May forward. Not much happens with the soybean meal offers whether its for domestic or for export. March meal loses to the May and then bull spreads took over May forward. I’m not much with bean oil spreads but the bull spreading here is almost relentless.
March soybeans appear set to challenge the next level of resistance, $13.90 to $14.00. March soybean oil is on the verge of another leg up once we see a conclusive close above the $44.00 level (today did give us a new contract high close). March meal still has a way to go before it challenges its significant looking resistance, $450 to $460.
Daily & Resistance – 01/27
March Beans : $13.50 – $13.90
March Meal: $429.0 – $447.0
March Bean Oil: $43.00 – $44.70
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