January Soybeans closed 14 ¾ cents higher ($12.77 ¼), March 13 cents higher ($12.78 ¼) & July 10 ½ cents higher ($12.90 ¼)
January Soybean Meal closed $0.1 higher ($372.3), March $0.3 lower ($368.7) & July $2.0 higher ($369.7)
January Soybean Oil closed 118 pts higher ($54.65), March 122 pts higher ($54.73) & July 131 pts higher ($54.73)
Weekly Soybean Export Sales – 1.309 M T. old crop vs. 1.100-1.775 M T. expected – 140.0 K T. new crop vs. 0-125 K T. expected
Weekly Soybean Meal Export Sales – 95.6 K T. old crop vs. 100-250 K T. expected – 0.2 K T. new crop vs. 0-40 K T. expected
Weekly Soybean Oil Export Sales – 10.6 K T. old crop vs. 0-25 K T. expected – no new crop vs. 0-10 K T. expected
USDA announces Soybean Oil Export Sales – 20.0 K T. to India
The spot export market for soybeans continues to move higher. Weekly export sales were deemed as “okay”. Soybean oil continues its rebound taking its cue from yesterday’s NOPA crush data. Palm oil goes along for the ride. The resumption of long oil/short meal keeps the meal market under wraps. Most of Brazil is in good shape. The southeastern reaches continue to show a dry bias. Argentina talks about how it is going to get rather hot for a while but generous rainfall should follow.
The spot soybean market at the Gulf posts $1.05 bid / $1.18 offer at its midday posting. At the beginning of the month it was 85/95. Needless to say the Jan/March bean spread is on the verge of inverting. I can’t help but notice the market for January at the Gulf is 85/95 (F) and for February 74/88 (H). the interior meal basis reads steady to easier while for export it is fully steady. Meal spreads still show a friendly bias.
January soybeans register their highest close dating back to late September. The flat price was higher in mid-late November but could not sustain those rallies on a closing basis. Today’s close suggests a test of $13.00 may be near at hand. One may thing the 400 pt rally in bean oil in a 24 hour time frame may be overdone. Daily technical data is trying to suggest we saw the worst for now yesterday. Short term we may see some backing and filling of the recent rally but I’m thinking the near term bias is now going to be sideways to higher. If the trend in bean oil is going to be sideways to higher then that means meal will be sideways to lower.
Daily Support & in Resistance – 12/17
Jan Beans: $12.66 – $12.90
Jan Meal: $366.0 – $380.0
Jan Soy Oil: $53.60 – $56.00
The risk of trading and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.