Soybeans Commentary

storck

Soybeans – Just My Opinion

November Soybeans closed 4 cents higher ($12.03 ½), Jan 4 ¾ cents higher ($12.16 ¾) & March 5 ¼ cents higher ($12.29)

December Soybean Meal closed $0.1 lower ($342.5), Jan $0.5 higher ($338.4) & March $1.2 higher ($337.5)

December Soybean Oil closed 67 pts higher ($59.14), Jan 65 pts higher ($58.98) & March 57 pts higher ($58.68)

USDA announces 22.0 K T. soybean oil sold to unknown

My description of today’s soybean trade is “wishy-washy”. Most of today’s support came from the soybean oil market and its 22.0 K T. export sale to unknown. It was interesting to note that palm oil prices were modestly higher while energy prices were sharply lower. Soybean meal tried to muster some follow through buying from yesterday but inter-market spreading, buy bean oil selling bean meal, kept this market under wraps. The end result of the products’ price action was a “wishy-washy” trade in soybeans.

Crush margins stay strong so that means the soybean processor basis stays strong. Basis levels involved with export stay soft looking.   Soybean spreads ran mixed on the day; Jan loses fractionally to the March while March gains fractionally on the May. The interior cash meal basis continues to strengthen. Despite this meal spreads took a breather today from recent advancement.

I don’t have much to say about today’s 14 cent trading range (Jan beans) inside of yesterday’s 59 cent trading range. We will continue to watch the planting/development of the SA soybean crop and go from there. So far I’m not seeing any issues down there but we have to pay attention as forecasters remind us of the La Nina presence. I still think Dec meal wants to look at the $348.0-$350.0 resistance level. As I mentioned yesterday I don’t think Dec bean oil has that much more on the downside vs. what we saw yesterday.

Daily Support & in Resistance – 11/11

Jan Beans: $12.00 – $12.27

Dec Meal: $336.0 – $347.0

Dec Soy Oil: $58.00 – $60.00

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.