Jan Soybeans closed 5 ½ cents higher ($9.00 ¼), March 5 ¾ cents higher ($9.12 ¾) & July 6 cents higher ($9.37 ¼)
Jan Soybean Meal closed $1.7 higher ($312.7), March $1.8 higher ($316.7) & July $1.7 higher ($323.3)
Jan Soybean Oil closed 28 pts higher ($28.18), March 25 pts higher ($28.43) & July 26 pts higher ($28.97)
The soybean complex continues with the advance that started last Friday. The talk is that China is completing its third purchase of US soybeans that would being the recent total to 5.0 M T. Concerns over the Brazilian soybean crop continue to circulate due to the dryness in Mato Grosso do Sul. Argentina also has concerns for its soybean crop in the north northeastern areas due to excessive moisture.The status of the scheduled USDA production for next Thursday remains up in the air. Supposedly we’ll have some clarification tomorrow. If we were to have a report next Thursday the trade will be expecting to see a lower yield along with lower harvested acres. Demand numbers would feature steady export data and just maybe a slight hike in crush. CONAB will be out next week updating Brazilian soybean production. Given the ongoing dryness in MGDS a slight reduction cannot be ruled out.
Interior cash soybean markets (basis) continue to show a steady to higher bias. The Gulf remains firm in anticipation of some Chinese business. Soybean spreads ran fractionally easier to May and then May and July gain on their forward contracts. Old crop gains on the new crop. Offers to sell cash soybean meal for both domestic usage and for export continue to be depressed looking. Meal spreads ran pretty much steady within the old crop while old crop gains fractionally on the new crop.
Soy complex charts show prices rebounding smartly. Soybeans appear to be in line to test resistance levels that were established in the first half of December. Soybean meal charts read higher as well suggesting a test of the mid-$320’s (March). Not to be left out March soybean oil appears ready to probe the upper $28.00’s.
Daily Support & Resistance for 01/04
Mch Soybeans: $9.00 – $9.20
Mch Soybean Meal: $312.0 – 321.0
Mch Soybean Oil: $27.95 – $28.75
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