Jan Soybeans closed 6 cents higher ($9.11 ¾), March 6 cents higher ($9.06 ½) & July 6 cents higher ($9.48 ¾)
Dec Soybean Meal closed $0.6 higher ($312.7), March $0.4 higher ($317.5) & July $0.5 higher ($323.5)
Dec Soybean Oil closed 33 pts higher ($28.64), March 33 pts higher ($29.11) & July 32 pts higher ($29.62)
Wishing and hoping for some Chinese announcements in regard to what the US has said transpired at the G-20 summit keeps the soybean market alive. To date we’ve heard very little out of China as to their take on the G-20 summit. Mr. XI has yet to return to China since the summit so it’s my idea no one there will say anything until they hear it from him. Bean oil was the leader in the products taking their cue from a rebounding palm oil market. Soybean meal continues to dog it from a more than ample supply. Given the month long decline in crush margins I was a bit surprised to see the strong crush data yesterday afternoon.
The interior cash soybean market continues to show a mixed look. Chgo continues to show they want soybeans; interior river locations not so much. The basis at the Gulf continues to show easing. Soybean spreads ran pretty flat on the day; old crop gains a bit on the new crop. Offers to sell cash soybean meal in the domestic market see an unchanged truck market, a slightly better rail market and a soft looking export market. Meal spreads ran fractionally mixed on the day.
Soybean price charts continue to hold their own as far as support is concerned. Monday night easing got soybean prices into the gap that was created Sunday night but by the close the gap still remains open. Nearby soybean meal came within a few ticks of closing its Sunday gap but by day’s end the gap still exists albeit minor. Nearby bean oil appears geared up to test suspected resistance in the mid-low $29.00’s (Jan). If soybean oil continues to gain on soybean meal I’ll be totally mistrusting of a further rally in soybeans. For the soybean market to sustain the current rally we need to see soybean meal assume a leadership role and we need to see some Chinese buying. It will be interesting to finally see China’s take on the G-20 summit as they have not confirmed anything the US has touted.
Daily Support & Resistance for 12/05
Jan Soybeans: $8.95 – $9.16 ($9.20)
Jan Soybean Meal: $311.0 – 319.0 (?)
Jan Soybean Oil: $28.35 – $29.20
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.