To start the week, soybeans gapped higher at the start of the overnight session and then traded in a back-and-forth fashion for the rest of the session and closed with small gains. The morning’s export shipments report didn’t do much to move the markets. Shipments were in the range of trade expectations and the lowest in 13 weeks, but shipments normally decline at this point in the marketing year. Light support came from hot and dry forecasts for Argentina. But that was limited by most of Brazil expecting to see good rains over the next 2 weeks. While there was no daily soybean sales reported today, USDA did announce a sale of 23,000 MT of soybean oil to India.
In Tuesday’s session soybeans traded in a tight range overnight, but the gains accelerated in the day session and the market closed with strong, close to 20 cent gains. The March contract closed at the highest level seen since Nov. 18. Hot and dry forecasts for Argentina and southern Brazil that may last all month supported both the soybean and soybean meal markets. Dr Cordonnier lowering his estimate of Argentina’s production by 2 MMT to 53 MMT added to the gains. He left his estimate for Brazil unchanged at 171 MMT. The funds are sitting at a record short position for soybean meal. Positioning ahead of month end, end of the quarter, and year end was also supportive.
When the markets reopened Thursday morning soybeans traded on both sides of unchanged and closed with small gains. South American weather forecasts are mixed. Parts of Argentina did see rains over the past 2 days and there are limited chances of rain in the 6 to 10 and 11-to-15-day forecasts. Brazil is expected to see good rains for the northern and central parts of the country. Southern Brazil does not have much rain in the forecasts over the next 2 weeks. StoneX increased their estimate of Brazil’s production by 5.2 MMT to 171.4 MMT. After the close USDA released their November crush report. Nov. crush totaled 210.0 MB, higher than the average trade estimate of 206.1 MB and last November’s 200.1 MB. Gains were limited by the sharply higher US dollar.
USDA’s projected per acre payment for the $10 Billion Ag Economic Program for soybeans is $29.50.
Target $10.85 to advance sales.
Mar soybeans support is at $9.47 while resistance is at $10.45.
For the week, March soybeans were at $9.9175 up 1.75 cents while May soybeans were at $10.0375 up 3.25 cents. March soybean meal was at $308.60 down $3.00 and March soybean oil was at $39.93 down 7 cents.
For the month, March soybeans were up 14.5 cents while May soybeans were up 13.75 cents. March soybean meal was up $19.30 and March soybean oil was down $1.71.
For the year, March soybeans were down $2.875 while May soybeans were down $2.85. March soybean meal was down $69.10 and March soybean oil was down $7.82.
Soybean Weekly Comments January 3
Soybean Weekly Comments January 3
To start the week, soybeans gapped higher at the start of the overnight session and then traded in a back-and-forth fashion for the rest of the session and closed with small gains. The morning’s export shipments report didn’t do much to move the markets. Shipments were in the range of trade expectations and the lowest in 13 weeks, but shipments normally decline at this point in the marketing year. Light support came from hot and dry forecasts for Argentina. But that was limited by most of Brazil expecting to see good rains over the next 2 weeks. While there was no daily soybean sales reported today, USDA did announce a sale of 23,000 MT of soybean oil to India.
In Tuesday’s session soybeans traded in a tight range overnight, but the gains accelerated in the day session and the market closed with strong, close to 20 cent gains. The March contract closed at the highest level seen since Nov. 18. Hot and dry forecasts for Argentina and southern Brazil that may last all month supported both the soybean and soybean meal markets. Dr Cordonnier lowering his estimate of Argentina’s production by 2 MMT to 53 MMT added to the gains. He left his estimate for Brazil unchanged at 171 MMT. The funds are sitting at a record short position for soybean meal. Positioning ahead of month end, end of the quarter, and year end was also supportive.
When the markets reopened Thursday morning soybeans traded on both sides of unchanged and closed with small gains. South American weather forecasts are mixed. Parts of Argentina did see rains over the past 2 days and there are limited chances of rain in the 6 to 10 and 11-to-15-day forecasts. Brazil is expected to see good rains for the northern and central parts of the country. Southern Brazil does not have much rain in the forecasts over the next 2 weeks. StoneX increased their estimate of Brazil’s production by 5.2 MMT to 171.4 MMT. After the close USDA released their November crush report. Nov. crush totaled 210.0 MB, higher than the average trade estimate of 206.1 MB and last November’s 200.1 MB. Gains were limited by the sharply higher US dollar.
USDA’s projected per acre payment for the $10 Billion Ag Economic Program for soybeans is $29.50.
Target $10.85 to advance sales.
Mar soybeans support is at $9.47 while resistance is at $10.45.
For the week, March soybeans were at $9.9175 up 1.75 cents while May soybeans were at $10.0375 up 3.25 cents. March soybean meal was at $308.60 down $3.00 and March soybean oil was at $39.93 down 7 cents.
For the month, March soybeans were up 14.5 cents while May soybeans were up 13.75 cents. March soybean meal was up $19.30 and March soybean oil was down $1.71.
For the year, March soybeans were down $2.875 while May soybeans were down $2.85. March soybean meal was down $69.10 and March soybean oil was down $7.82.