Jan Soybeans closed 3 cents higher ($9.07 ¾), March 2 ¾ cents higher ($9.20 ¾) & July 2 ¾ cents higher ($9.45 ¾)
Jan Soybean Meal closed $1.3 higher ($310.4), March $1.3 higher ($314.7) & July $1.1 higher ($322.1)
Jan Soybean Oil closed 24 pts higher ($28.41), March 22 pts higher ($28.67) & July 20 pts higher ($29.23)
Today’s focus returned to reports of Chinese buying. During the day “export grain traders” have reported the Chinese have been buying and looking at bids for more. The resulting price action was not as robust when compared to what we saw last Wednesday when we had similar reports. I think the trade was less responsive today vs. last Wednesday as last Thursday’s announced sales were deemed disappointing. We’ll see what kind of announcements the USDA will have for us tomorrow morning and go from there. Reports of higher basis levels at interior river locations as well as at the Gulf supported the idea of least some buying. Soybean spreads ran fractionally better on the day. Soybean meal pokes its head up as offers for rail and for export are showing some minor firming. Meal spreads followed soybeans spreads; steady to fractionally better. Board crush margins hover just above recent 12 month lows. Bean oil does some minor correcting of its recent break just due to thoughts of a short term oversold.
People supposedly in the know suggest China was buying soybeans today. If the amounts are of any consequence we should hear from the USDA tomorrow morning with daily sales’ announcements. If the sales are as unimpressive as we saw last Thursday I have to think the complex will resume its struggles.
Daily Support & Resistance for 12/19
Mch Soybeans: $9.09 – $9.32
Mch Soybean Meal: $309.0 – 319.0
Mch Soybean Oil: $28.25 – $29.00
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