Soybeans Commentary


Soybeans – Just My Opinion

July Soybeans closed ¾ cent higher ($9.13 ½), August 1 cent higher ($9.20 ¼) & Nov ¾ cent higher ($9.40 ¼)

July Soybean Meal closed $2.3 lower ($322.0), August $2.2 lower ($323.5) & Dec $2.1 lower ($330.9)

July Soybean Oil closed 19 pts higher ($28.33), August 19 pts higher ($28.47) & Dec 15 pts higher ($28.94)

Soybeans make their highs of the day early in the Monday night session in response to the slower than anticipated planting progress. As the night trade went prices eased with the rest of the Ag sector. As it was both the high and low of the day were made during the night session. Relatively early in the day session it was announced that the WH has arranged a meeting with head of China at the G-20 summit at the end of the month. There will be some talks prior to the heads of state meeting with their respective negotiators. This announcement gave a boost to the soybean market that allowed for modest gains on the day. The meal market still has problems as the low crush rate from NOPA boosted the bean oil market and the resulting inter-market spreading kept the meal market under wraps.

The interior soybean basis continues to show a firm undertone. The recent talk about the possibility of losing soybean acres has slowed movement especially east. The Gulf market for soybeans has gotten fairly erratic as postings from night to midday and back to night are not showing any consistency. Soybean spreads out to March ran fractionally mixed on the day. Interior offers in cash meal are edging higher mostly from slow soybean movement as well as the ongoing logistical problems. Meal spreads ran fractionally mixed out to December.

New highs for the soybean market followed by nondescript closes suggest this market is getting ready for some consolidation. The meal market has taken over the “dog” role and that keeps soybean advances in check. Strength in bean oil helps to keep the soybean market alive but that’s about it.

Daily Support & Resistance for 06/19

July Soybeans: $8.95 – $9.25

July Soybean Meal: $316.0 – $328.0

July Soybean Oil: $27.85 – $28.75

The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.