Soybean Complex Market Recap: 14 September 2011
Nov Soybean finished down 9 at 1382.75, 13.75 off the high and 5.50 up from the low.
Jan Soybean closed down 8.75 at 1393.75. This was 5.75 up from the low and 13.75 off the high.
Dec Soymeal closed up 0.7 at 363.4. This was 2.9 up from the low and 2.4 off the high.
Dec Soybean Oil finished down 0.53 at 57.1, 0.72 off the high and 0.09 up from the low.
Talk of increased harvest just ahead and long liquidation from speculators was enough to keep soybean futures under selling pressure late in the session to close moderately lower on the day.
The threat of a freeze tonight in the northern Midwest plus a strong recovery in the US stock market was not enough to offset the spec selling and futures pushed down to the lowest level since August 22nd with Nov Soybean now down as much as 0.8775 off of the August 31st high.
Weakness in energy markets and a firm USS plus follow-through technical selling from this week's collapse helped to pressure the market early in the day.
However, the market managed to trade higher on the day with a jump in other grains and talk of possible freeze damage this week in the northern Midwest helping to support a temporary bounce.
Wheat and Corn stayed higher on the day into the mid-session while soybeans drifted lower.
The NOPA monthly crush report for August came in with a crush of 118.76-M bu which was below trade expectations and down from 122.9-M in July and 122.4-M last year.
Trade estimates were just under 120-M. Soybean Oil stocks were 2.313-B lbs from 2.53-B in July and 2.818-B last year.
Private exporters reported the sale of 106,000 tons of US Soybean to China.
Grain officials in Paraguay believe that Y 2011/12 production could jump to a record high 9-M tons from 8.4-M this year which was also a record. For the export sales report in the morning, traders see Soybean sales near 500,000 tons from 444,900 tons last week.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.