March Soybeans closed 30 cents higher ($13.91 ¼), July 29 ½ cents higher ($14.06 ½) & November 20 ½ cents higher ($13.04 ½)
March Meal closed $8.2 higher ($398.3), July $6.5 higher ($395.3) & December $4.7 higher ($374.0)
March Bean Oil closed 168 pts higher ($60.76), July 160 pts higher ($60.51) & December 138 pts higher ($58.53)
Zoom. Zoom, Zoom!!! – The entire soybean complex moves noticeably higher. Soybean oil gets its fuel from Indonesia thinking about export curbs on palm oil as well as sharply higher crude oil. Soybean meal retraces half of Tuesday’s losses as it goes along for the ride. Yes, we have an unknown with SA crop. Now couple that with what appears to be buying stemming from inflation hedging and the end result is Zoom, Zoom, Zoom.
The interior soybean basis runs steady to easier. The midday posting at the gulf suggests a bit easier. Soybean spreads had a bullish bias within the old crop and old crop was a noticeable gainer vs. the new crop. Interior soybean meal offers appear to run steady to easier. The gulf for meal holds firm. Soybean meal spreads rebounded tighter spurred on the flat price buying.
We’ve got lots of emotion here and that will be synonymous with extended volatility going forward over the near term. Soybeans are in a resistance level that was made last week but I don’t think it will take much to challenge the $14.15 level if not $14.25. I do have the feeling we’ve stopped the bleeding as far as SA soybean crop size. Now that it appears we are trading inflation and energy (soybean oil) the only sellers I see out there (other than short term profit takers) are farm related.
Daily Support & Resistance – 01/20
March Beans: $13.75 – $14.10
March Meal: $394.0 – $406.0
March Soy Oil: $59.50 – $62.20
The risk of trading futures and options can be be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.