May Soybeans closed 48 ¼ cents lower ($16.12 ¼), July 58 ½ cents lower ($15.84) & Nov 47 ¼ cents lower ($13.96 ½)
May Soybean Meal closed $27.4 lower ($423.5), July $27.4 lower ($421.4) & Dec $19.8 lower ($402.6)
May Soybean Oil closed 62 pts lower ($68.04), July 62 pts lower ($65.78) & Dec 53 pts lower ($58.54)
Weekly Soybean Export Sales – 94.3 K T. old crop vs. 0-250 K T. – 102.5 K T. new crop vs. 200-420 K T.
Weekly Soybean Meal Export Sales – 74.6 K T. old crop vs. 75-285 K T. expected – 32.1 K T. new crop vs. 0-50 K T. expected
Weekly Soybean Oil Export Sales – 0.8 K T. old crop vs. 0-30 K T. expected – no new crop vs. none expected
Despite what was perceived as a constructive USDA report yesterday major liquidation hit the soybean and soybean meal markets today. Soybean oil was able to stand in today with only modest losses. It seems like commodities in general were hit with some major liquidation today. The soybean basis was hit as well today whether it be river locations, processor locations and the Gulf. Bull spreads took it on the chin as well. As much as I think the underlying fundamentals remain constructive for the soybean complex I have to realize the high volatility will bring us days like today. I think it is healthy for the market in the longer run to see waves of liquidation such as we saw today. After all is a bit unreasonable to think markets have to go higher every day.
Support & Resistance – 05/14
July Soybeans: $15.60 – $16.10
July Soy Meal: $415.0 – $431.0
July Soy Oil: $63.70 – $67.00
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