July Soybeans closed 11 cents lower ($15.11 ¾), August 10 ½ cents lower ($14.60 ½) & Nov 15 cents lower ($13.47 ¼)
July Soybean Meal closed $13.9 lower ($386.3), August $12.9 lower ($386.4) & Dec $10.7 lower ($383.8)
July Soybean Oil closed 156 pts higher ($66.69), August 125 pts higher ($62.54) & Dec 78 pts higher ($58.36)
July soybeans challenge the $15.00 level and so far it holds. Soybean oil was the savior for soybeans as it rebounded smartly today on the coattails of the rebounding palm oil market. Soybean meal did its best to restrict the soybean market as July meal fell to levels not seen since December. The soybean market was trying to hold its own until July corn went into its freefall. New crop soybeans were also trying to hold their own on a slower than expected planting pace but its hard to ignore the perception that the soybean crop will get off to a good start. Going forward forecasts – it looks like the northern tier of the Midwest is going to extend its dry bias once we get into the June; draw a line from the southern edge of S. Dakota going east all the way into Michigan.
Interior cash soybean markets continue to show defensive bias. Processors still have the best basis but its recent slide is hard to ignore. The river locations are almost sick looking. Despite this the Gulf basis for soybeans reads fully steady at its midday posting. Old crop soybeans held a slight edge vs. the new crop while the spread structure in the new crop shows a bearish bias. The cash soybean meal market remains slack looking.
July soybeans hold the psychological support of $15.00. Trading below $14.90 will have the remaining flat price longs jumping ship. The best looking support for November soybeans is another 20-30 cents lower. July soybean oil is a tough one to figure out as it is trying to buck the bearish looking soybeans and soybean meal. July meal shows some decent looking technical support at the $380.0; at least enough not to sell into this level.
Daily Support & Resistance – 05/26
July Soybeans: $14.94 – $15.27
July Soybean Meal: $380.0 – $394.0
July Soy Oil: $65.00 – $68.10
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