January Soybeans closed 5 ¾ cents lower ($12.61 ½), March 4 ¾ cents lower ($12.66 ½) & May 4 ¼ cents higher ($12.73 ¾)
December Soybean Meal closed $8.0 lower ($359.7), Jan $6.0 lower ($352.6) & March $4.9 lower ($350.9)
December Soybean Oil closed 69 pts higher ($57.79), Jan 64 pts higher ($57.86) & March 60 pts higher ($57.67)
USDA announces Soybean Export Sales – 130 K T. to China
Weekly Soybean Export Inspections – 2.246 M T. vs. 1.850-2.325 M T. expected
The soy complex starts Sunday firm and then eased into the day session. Soybean oil came back strong from the early day session weakness buoyed by stronger palm oil and even stronger crude oil prices. Soybean meal really never recovered from its day session sell-off as it seems the processor has been ramping up his crush to the extent to the point it is weighing on the cash meal market offers. The weakness in meal was greater than the strength in bean oil and that in turn kept the soybean market in the minus column while off the day’s lows. Weekly soybean export inspections were no less than stout and that allowed for support when Jan soybeans were down nearly 12 cents. The weather in Brazil is good in the north while dryness is beginning to become an issue for the south. The announced sale to China lent some minor support as the trade is becoming more and more aware that recent sales are not going beyond January shipment.
Interior river locations that are involved with soybean exports are showing steady to lower basis levels even though the Gulf remains strong. The processor continues to show the best basis around. Board Crush margins ran fractionally easier for January and fractionally better or March. Soybean and soybean meal spreads showed a widening bias all the way out to the new crop. Once it becomes apparent that the US is getting shut out in the export market due to new crop from Brazil spreads should widen further.
Like corn I’m not looking for a lot of noticeable activity as we move through December. I’m thinking January soybean should be able to realize support down towards the $12.30 level and resistance from $12.90 to $13.00. January soybean meal is already showing resistance in the low $360.0’s while support should be in the mid to low $340.0’s. January soybean oil should continue to be a crap-shoot as it has already realized support against $54.00 and resistance from $62.00 to $63.00. As mentioned earlier soybean oil will continues to take its cue for the energy markets as well as the goings on with its competing veg oils.
Daily Support & in Resistance – 12/07
Jan Beans: $12.48 – $12.80
Jan Meal: $348.0 – $356.5
Jan Soy Oil: $56.80 – $59.25
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