March Soybeans closed 8 ½ cents lower ($13.61 ¼), July 9 cents lower ($13.77) & November 9 cents lower ($13.84)
March Meal closed $15.5 lower ($390.1), July $13.1 lower ($388.8) & December $9.0 lower ($369.3)
March Bean Oil closed 62 pts higher ($59.08), July 50 pts higher ($58.91) & December 19 pts higher ($57.15)
Beneficial weather in Argentina for the developing soybean crop weighs on soybean and soybean meal prices. Weather in the dry areas of southern Brazil moderates but not to the extent seen in Argentina. Weekly soybean export inspections were much better than expected but unfortunately inspections of this size are not expected to last as the new crop from Brazil slowly but surely comes online. Recent strength in the US Dollar favors Brazilian origin for export. NOPA crush was a record for the organization. This initially weighed on bean oil but the longs here were able to shake it off due to the strength in the palm oil market and the crude oil market. Soybean meal took the brunt of the weather related selling along with the higher than expected NOPA crush.
The interior soybean basis is mostly steady; any changes that are being seen are a bit easier. The Gulf basis for the spot time frame remains strong. Soybean spreads ran steady to slightly better despite the flat price selling. Cash meal offers in the country are running ste4ady to easier for both truck and rail. The gulf basis for meal runs steady holding onto to recent gains. Meal spreads got hit hard from the flat price selling.
The technical look at both soybeans and soybean meal suggest interim tops are in place. Soybean oil continues to advertise a broad trading range affair with a bias for higher prices over the near term. If bean oil does indeed continue to move higher over the near term it should work to keep soybean prices alive. It will be interesting to see if soybeans can retrace back into what looks like an interim topping formation. Soybean meal looks like it has another $10.0 down before it runs into any decent looking technical support.
Daily Support & Resistance – 01/19
March Beans: $13.50 – $13.80
March Meal: $384.0 ($381.0) – $398.0
March Soy Oil: $58.15 – $60.25
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