The Soybean Complex Market Recap: 30 August 2011
Nov Soybean finished up 10 at 1457, 1.50 off the high and 20 up from the low.
Jan Soybean closed + 10.25 at 1466.25. This was 20.25 up from the low and 1.50 off the high.
Dec Soymeal closed up 2.2 at 388.6, + 5.5 from the low and 0.2 off the high.
Dec Soybean Oil finished + 0.18 at 58.76, 0.33 off the high and 0.71 up from the low.
Nov Soybean closed moderately higher on the session, posting new contract highs for 3 sessions in a row.
Another fall in crop conditions and a lack of significant moisture in the forecast for central Illinois helped support the market to push Nov Soybean to a new high.
Weakness in outside market forces plus a bounce in the USD helped to pressure the market early.
Corn and Wheat weakness added to the negative tone early, but crop concerns helped support the market on the early dip.
Traders are concerned with lower yield potential in the USA and in China. China production was already expected to be down near 11% from last year due to lower planted area so yield issues could push production even lower.
The market found some support from lower temperatures in the extended forecast models for later next week but it does not appear that temperatures will get much below the low 40′s in the far northern growing areas.
Taiwan bought 60,000 tons of Soybean from Brazil.
In a survey of near 1,000 farmers, Farm Futures magazine indicated that Soybean planted area in Y 2012 could reach 76.9 million acres, up 2.3% from this year. Basis levels are down sharply for nearby shipment this week due to the advancing harvest.
Traders see 0-100 contracts for 1st notice day deliveries for Wednesday morning. Soybean Oil deliveries are expected to be large at 2,000-5,000 contracts with meal near 0-200 contracts.
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.
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