March Soybeans closed 4 ¼ cents higher ($14.07 ¼), July 6 ¼ cents higher ($14.20 ¼) & November 11 cents higher ($13.18 ½)
March Meal closed $1.9 lower ($392.0), July $1.3 lower ($390.3) & December $1.8 higher ($371.3)
March Bean Oil closed 54 pts higher ($62.51), July 61 pts higher ($61.72) & December 78 pts higher ($60.24)
I felt today’s soybean complex trade was that of being a follower; not showing much character of its own. It seemed soybeans were following the feed grain trade, soybean oil influenced by palm oil and crude oil while soybean meal didn’t show much of anything. The weather in SA appears to be improving which is beneficial to crop development. I have to think that is limiting rally potential no matter how strong feed grains get. Bear spreads working throughout the complex was like waving a red flag at the rally attempts.
The interior soybean basis is similar to what I’m seeing in corn; processors are standing in for ownership while river locations appear to be on the defe4nsive. The Gulf is easing ever so slightly for soybeans. Soybean spreads had a definite bearish bias today. Interior cash offers for soybean meal mixed; truck offers steady to easier while rail offers run steady to better. The Gulf basis for meal stays firm. The end result of all this was that meal spreads cleared showed a defensive posture today.
As I mentioned earlier I was not impressed with the soy complex trade efforts to rally today. Soybean oil will continue to get its daily impetus from the palm and energy sector. Soybean and soybean meal; I don’t trust them trying to sustain a rally.
Daily Support & Resistance – 01/26
March Beans: $13.90 – $14.22
March Meal: $385.0 – $401.0
March Bn Oil: $60.90 – $63.40
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.