Soybean Complex Market Recap: 6 September 2011
Nov Soybean finished down 23.25 at 1422.50, 12 off the high and 14.50 up from the low.
Jan Soybean closed down 23.50 at 1432.25. This was 13.75 up from the low and 14.25 off the high.
Dec Soymeal closed down 9.8 at 375.2. This was 0.2 up from the low and 7.4 off the high.
December Soybean Oil finished down 0.22 at 58.04, 0.04 off the high and 0.87 up from the low.
Thoughts that last week's rains in Iowa, northern Illinois and especially Ohio may have helped crop conditions plus Bearish outside market forces helped to pressure the soybean market today.
A Bearish tone to outside market factors and talk of better than expected rains across parts of the northern and southern Corn Belt on the weekend helped to pressure the market early.
The sharp rally in the USD, weakness in energy and equity markets and a risk aversion tone from fund traders helped to pressure the market early and push soybeans to a 6-session low.
Weekly export inspections came in at 9.13-M bushels which was near the low end of trade expectations.
November soybean are already down as much as 0.515 off of last week's contract highs.
A prominent research firm pegged Soybean yield at 41.5 bu/acre and production at 3.139-B bushels.
In the last USDA supply/demand report, production was pegged at 3.065-B bushels with a 41.4 yield. The estimates are much higher than market expectations and added to the Bearish tone.
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.