Soybean Complex Market Recap: 9 September 2011
Nov Soybean finished up 8.50 at 1426.75, 2.25 off the high and 14 up from the low.
Jan Soybean closed up 8.25 at 1436.75. This was 13.75 up from the low and 2 off the high.
Dec Soymeal closed up 3 at 375.1, + 3.6 from the low and 0.9 off the high.
Dec Soybean Oil finished up 0.38 at 58.71, 0.17 off the high and 0.71 up from the low.
Nov Soybean closed 8.50 cents higher on the session but down 19 cents for the shortened week.
More talk of the potential for frost in the northern Corn belt next week helped to support the market ahead of the USDA reports for Monday morning.
Weakness in outside market forces on growing concerns for European debt issues helped to limit the buying support early in the session.
Positioning ahead of the USDA crop production and supply/demand report helped keep the trade choppy early but a continued surge higher in the USD and weakness in the stock market helped to push the market lower on the day into the mid-session.
Weekly export sales for soybean came in at 444,900 metric tons which was near trade expectations. As of September 1st, cumulative soybean sales stand at 37.6% of the USDA forecast for 2011/2012 (current) marketing year versus a 5 yr average of 32.2%.
Sales of 455,000 metric tons are needed each week to reach the USDA forecast. Private exporters reported the cancellation of 240,000 tons of US soybean to China.
Meal sales came in showing cancellations of 24,500 metric tons for old crop and 172,500 for new crop for a total of 148,000 which was near the high end of expectations.
Net oil sales came in at 5,900 tons, all for new crop. Traders see soybean production coming down about 25-M bu for the report Monday and ending stock down by just 5-M bu as compared with the USDA August estimates of 3.056-M and 155-M bu respectively.
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.