Soybeans Commentary


Soybeans – Just My Opinion

Sept Soybeans closed 7 cents lower ($13.69), Nov 6 ¾ cents lower  ($13.61 ½) & Jan 6 ¾ cents lower ($13.65 ½)

Sept Soybean Meal closed $0.7 higher ($360.31, Oct $0.6 higher ($359.3)  & Dec $0.4 higher ($362.9)

Sept Soybean Oil closed 75 pts lower ($62.54), Oct 81 pts lower ($62.19) & Dec 82 pts lower ($62.12)

USDA announces Soybean Export Sales – 198 K T. sold to China, 132 K T. sold to unknown – brings 9-day total to 2.173 M T.

We continue to sell more soybeans for export. The crop gets an unexpected downgrade Monday afternoon. Despite this bullish news November soybean honor suspected interim resistance levels and we fail to hold the attempt to rally. Soybean oil was supposedly the drag on soybean prices as the palm oil market sells off on fears of slowing export. Soybean meal tried to give us a conclusive buy signal but it too failed to sustain its attempt to rally. Given the price performance one trying to be bullish has to question what’s going on here. I remain with the idea the US soybean yield will increase in the coming months. It is my thought that if the soybean market is going to have some longer term bullish potential it will have to come from problems with the soon to be planted Brazilian crop. For the near term I’m thinking November soybeans settle into a $13.00 to $14.00 trading affair until more is know as to crop size.

Daily Support & Resistance – 08/18

Nov Beans: $13.55 – $13.80

Dec Meal: $358.0 – $367.0

Dec Soy Oil: $61.00 – $63.50

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.