Soybean Complex Market Recap

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Wednesday, December 11, 2013

January Soybeans finished up 5 3/4 at 1344, 1 1/2 off the high and 9 1/2 up from the low. March Soybeans closed up 6 1/2 at 1328 1/2. This was 10 1/4 up from the low and 1 1/2 off the high.

January Soymeal closed up 0.6 at 438.9. This was 2.5 up from the low and 1.9 off the high.

January Soybean Oil finished up 0.29 at 40.4, 0.16 off the high and 0.28 up from the low.

March soybeans closed 6 1/2 cents higher on the day with March meal up $1.70 and March oil up 29. The market saw choppy and two-sided trade early and was trading up 3 1/2 cents into the mid-session. The meal market is also seeing short-term choppy trade with an inside day after the challenge of the September highs yesterday and weak close. The upside may have been limited by weaker basis levels with talk at elevators of increased producer selling over the past few days. Traders see solid upfront demand for crush and export, good international crush margins and tight producer holding as short-term positive forces. Weather in South America, the outlook from many traders for 90-91 million tonnes out of Brazil (not 88 from the USDA yesterday) and the outlook for Argentina production near 57 million tonnes (not 54.5 from the USDA) are seen as potential negative forces ahead. Some traders also fear an adjustment higher in yield and production for the January USDA update for the US crop. Fears that speculators might reduce their net long position as we get closer to the holidays is also seen as a potential negative factor.

*Source: http://www.cmegroup.com/

*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.