January Soybeans closed 16 cents higher ($12.44 ¼), March 15 cents higher ($12.50) & May 14 cents higher ($12.57)
December Soybean Meal closed $1.5 higher ($358.0), Jan $0.3 lower ($348.8) & March $0.2 higher ($346.9)
December Soybean Oil closed 6 pts lower ($55.05), Jan 3 pts lower ($55.18) & March 4 pts lower ($55.28)
Weekly Soybean Export Sales – 1.063 M T. old crop vs. 800 K – 1.800 M T. expected – -48.0 K T. new crop vs. 0-100 K T. expected
Weekly Soybean Meal Export Sales – 146.6 K T. old crop vs. 100-200 K T. expected – -1.0 K T. new crop vs. 0-10 K T. expected
Weekly Soybean Oil Export Sales – 49.3 K T. old crop vs. 30-60 K T. expected – no new crop vs. 0-10 K T. expected
The USDA announces Soybean Export Sales – 164.1 K T. to Unknown, 130 K T. to China
Soybean oil carries the “bull” ball on Thursday following the big rebound in crude oil prices. Soybean meal languished from inter-market spreading as well as the idea that processors are picking up the pace of their crush. Soybean got additional help from decent looking weekly export sales as well as some confirmed Chinese business that had been rumored the other day. The sharp rebound in the equity market limited speculative selling. The weather for most of Brazil appears to be okay for now. It does look like the southern reaches may be entering a drier phase.
The interior cash soybean markets (basis) continue to show an overall firm tone. New cash soybean movement appears limited as the producer appears is not a willing seller for end of the year reasons. The gulf basis stays firm as well. The interior meal basis is steady to easier further suggesting the rate of crush is staying strong. Crush margins continue with their recent easing. Soybean spreads continue to be strong looking all the way out to the new crop. Meal spreads ran mixed to easier.
Are Jan soybeans worth $12.50 to $12.60? They are until the Brazilian market says differently. It looks Jan bean oil wants to honor the suspected support $54.00 support level. Bean oil’s day-to-day activity will continued to be influenced by the goings on in the crude oil/RBOB market. Jan meal still shows the technical capability to retrace back to the low $360.0’s but if the processor is indeed going to keep his crush rate strong this level will provide to be a stumbling block.
Daily Support & in Resistance – 12/03
Jan Beans: $12.30 – $12.60
Jan Meal: $343.5 – $356.5
Jan Soy Oil: $55.50 – $57.60
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.