Soybeans Commentary

storck

Soybeans – Just My Opinion

November Soybeans closed ¾ of a cent higher ($12.38), Jan ½ cent higher ($12.47 ½) & March ½ cent higher ($12.56 ¾)

December Soybean Meal closed $0.3  lower ($326.9), Jan $0.2 lower ($325.6) & March $0.3 higher ($326.5)

December Soybean Oil closed 83 pts lower ($62.31), Jan 64 pts lower ($61.99) & March 49 pts lower ($61.29)

USDA announces Soybean Export Sales – 199 K T. to China, 125.7 K T. to Mexico

Soybeans get pulled in all different directions on Tuesday. Announced export sales were only mildly supportive. Great planting weather in Brazil weighs on Jan forward contracts. Soybean oil sees profitaking despite stronger palm and energy prices. Soybean meal can’t get anything going as it seems processors were buying soybeans and selling products to lock in crush margins. Yesterday the Dec Board crush tapped at $1.90 per bu., today it finished near $1.65 per bu.

Since soybean harvesting in the central areas of the Midwest have come to a screeching halt recently weak river basis levels are staging a bit of a turn around. The Gulf is also showing a further bounce from last week’s lows. The processor continues to stand in given where crush margins are. Soybean spreads ran fractionally mixed on the day. The interior rail basis for soybean meal continues to show improvement. Despite this meal spreads showed some minor weakness. If the interior meal basis continues to improve it will act as a bullish influence on futures.

Jan soybeans look like they want to check the resistance level of $12.60 to $12.70. Given what I know as of this writing I would be surprised to see prices advance beyond that level. If Dec meal can get through its recent highs a quick run to the $338.0-$340.0 is a distinct possibility. Dec bean oil will remain a broad trading range affair with the immediate topside being $65.00.

Daily Support & in Resistance – 10/27

Jan Beans: $12.30 – $12.60

Dec Meal: $322.0 – $332.0

Dec Soy Oil: $61.25 – $63.60

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.