March Soybeans closed 4 ¾ cents lower ($13.65 ¼), July 3 ¾ cents lower ($13.45) & Nov 11 cents higher (11.54)
March Soybean Meal $0.5 lower ($430.5), July closed $1.1 lower ($423.0) & Dec $1.8 higher ($365.6)
March Soybean Oil closed 35 pts higher ($44.97), July closed 22 pts higher ($43.50) & Dec 30 pts higher ($40.48)
USDA announces Soybean Meal Export Sales – 133.0 K T. to Philippines
Weekly Soybean Export Inspections – 1.792 M T. vs. 1.100-2.150 M expected
The Monday trade within the soybean complex had something for everyone. We were initially higher in the overnight but prices could not sustain the rally. We saw another hard break at the onset of the day session but once again prices don’t stay down. Brazilian harvest is off to its slowest start for the past ten years. The harvest delays due to excessive moisture in the harvest ready areas has not prompted many to cut production. Argentina saw beneficial weather for its respective corn and soybean crops over the weekend.
The Interior Midwestern soybean basis ran mixed on Monday. Interior river locations that feed down to the gulf ran easier. Processor basis ran steady to better. The gulf soybean basis edges higher. Soybean spreads eased within the old crop and old crop was a noticeable loser to the new crop. The interior and export basis for soybean meal saw steady to lower offers. March meal gains on May and July but it was bear spreading after that.
The soybean and soybean meal markets have moved into a consolidation phase that features some periodic liquidation. I say periodic as when the markets sell off they don’t stay down. Going forward I have to think the trade will be eyeballing what the USDA may have to say next Tuesday when they update supply-demand. The question around that report will be how much does the USDA cut the US soybean carryout. With that said breaks will continue to be well received between now and then.
Daily Support & Resistance – 02/02
March Beans : $13.44 – $13.92
March Meal: $425.0 – $436.0
March Bean Oil: $44.30 – $45.60 (?)
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