Soybeans Commentary

storck

Soybeans – Just My Opinion

Nov Soybeans close 4 ½ cents lower ($8.67 ¼), March 5 cents lower ($8.91 ¾) & July 5 ¼ cents lower ($9.18)

Dec Soybean Meal closed $1.7 lower ($303.9), March $1.4 lower ($308.5) & July $1.0 lower ($314.8)

Dec Soybean Oil closed 16 pts lower ($27.55), March 15 pts lower ($28.02) & July 14 pts lower ($28.62)

Weekly Soybean Export Inspections – 1.301 M T. vs. 900 K – 1.300 M T. expected

USDA announces 276.7 K T. of soybeans sold to unknown

Weekly Soybean Crop Progress – Harvested – 88% vs. 91% expected vs. 93% 5-year average

The direct soybean news was positive but the dramatic break in crude oil overshadowed the positive news. Weekly export inspections were deemed solid. Word is that the US and China are at least talking again. Supposedly the Vice Premier of China is slated to come to Washington “soon”.

The interior cash soybean markets continue to show a steady to firm bias. Cash soybean sales are tough to come by. Jan forward soybean spreads ran steady to fractionally higher out to August but then they lost some ground. Offers to sell cash soybean continue to be depressed looking. Meal spreads saw ran easier on the day all the way out to the new crop.

Like the rest of the Ag markets soybeans continue to be a trading affair market. We can call the broad trading range $1.00 side; $8.30 to $9.30 basis Jan. The chart formation is showing a bit of triangulation; higher lows vs. lower highs. As far as I’m concerned it will all come down to if we can strike an accord with China at the G-20 Summit, Nov 30th to Dec 1st. The meal market grinds down to what I think is critical support, the $300.0 level. We came within $3.7 of that level today. Soybean oil is trying to honor the suspected support at $27.50 but not showing any signs of rejection.

Daily Support & Resistance for 11/14

Jan Soybeans: $8.74 ($8.69) – $8.88

Dec Soybean Meal: $301.5 – $308.5

Dec Soybean Oil: $27.25 – $27.90

 

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.