March Soybeans closed 17 ¾ cents lower ($14.06), July 14 ¾ cents lower ($13.97 ¼) & Nov 7 ½ cents lower (12.30 ¾)
March Soybean Meal closed $4.2 lower ($424.1), July $3.4 lower ($420.4) & Dec $3.1 lower ($381.4)
March Soybean Oil closed 18 pts lower ($50.96), July 43 pts lower ($48.67) & Dec 22 pts lower ($44.31s)
Weekly Soybean Export Sales – 167.9 K T. old crop vs. 200-800 K T. expected – 70.8 K T. new crop vs. 0-500 K T. expected
Weekly Soybean Meal Export Sales – 160.1 K t. old crop vs. 75-450 K T. expected – no new crop vs. none expected
Weekly Soybean Oil Export Sales – 4.4 K T. old crop vs. 5-30 K T. expected – no new crop vs. none expected
Welcome to the wonderful world of volatility! In the night session May soybeans trade nearly 20 cents higher while the onset of the day session has the market down about 32 cents. Weekly soybean export sales were nothing short of dismal. The weather forecasters are doing some flip-flopping as to the later developing soybeans in Brazil; recent forecasts were suggesting dryness and now they are forecasting beneficial moisture. This forecast shift is being applied to the Argentine crops as well. The harvest ready areas of Brazil are slowly but surely happening. Despite the slow pace of harvest it has not gotten the US any additional exports as evidenced by today’s sales reports.
The interior Midwestern soybean basis has a mixed look today. The Processor appears to be standing in while river locations involved with export have a soft look. The gulf basis for soybeans eases at its midday posting. It’s doubtful we see many soybean deliveries. The May forward spreads showed a widening bias all the way through the new crop.
May soybeans registered an impressive looking “Key” reversal today; new contract highs, an outside day and closing below the previous day’s low. New crop soybeans registered a minor reversal that involved new contract highs while closing lower for the day. Soybean oil fought hard from registering a reversal but in the end it did; new contract highs while closing lower on the day. Canola contracts, May and July, finished limit down. Soybean meal challenged the low side of its month old trading range and it manages to hold but that’s about it.
Daily Support & Resistance – 02/26
May Beans : $13.90 – $14.29
May Meal: $418.0 – $428.0
May Bean Oil: $48.65 – $50.40
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