July Soybeans closed 18 cents higher ($15.48 ½), August 18 ¾ cents higher ($15.00 ¾) & Nov 24 ¼ cents higher ($13.97)
July Soybean Meal closed $3.2 higher ($3983.7), August $3.0 higher ($399.5) & Dec $3.2 higher ($396.7)
July Soybean Oil closed 160 pts higher ($67.39), August 142 pts higher ($63.75) & Dec 157 pts higher ($60.36)
Weekly Soybean Export Inspections – 192.2 K T. vs. 90-400 K T. expected
Soybeans go along with the crowd; noticeably higher Sunday night and extending those gains early in the day session. What was different here is that soybeans gave back a good portion of those intra-day gains even though they still finished with decent gains. At one point July soybeans were up 48 cents only to finish 18 cents higher. Gains in the November contract at one point were 47 cents higher only to finish 24 cents higher. Similar price action was noted in the soybean meal contract; meal prices finished $8.0 or so off of their intra-day highs. Soybean oil was not any different despite finishing with notable gains. Soybean oil prices finished 80 – 100 pts off of their intra-day highs. Weekly soybean export inspections were not a factor to the day’s trade.
The trade is expecting to 87% of the intended soybean crop planted. The USDA reports 84% of the soybean crop has been planted, 62% emerged. The 5-year norm for soybeans planted is 67% and emergence at 42%.
Today’s rally in July soybeans had the challenging the low end of resistance, $15.75 – $15.80, that was established mid-May before retreating 35 cents or so. November soybeans saw similar price action; challenging the resistance that was made in mid-May before retreating 25 cents or so. Soybean meal to challenged recent established resistance before retreating. Soybean meal continues to be the weak link within the soybean complex. The price action in soybean oil looks like a two week old drift higher as it challenges the low end of resistance made two weeks ago.
Daily Support & Resistance – 06/02
July Soybeans: $15.30 – $15.68
July Soybean Meal: $391.0 – $403.5
July Soy Oil: $66.00 – $68.60
The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.