July Soybeans closed 13 ¼ cents lower ($15.74 ¼), August 4 ¼ cents lower ($15.21 ¼) & Nov 2 ½ cents higher ($13.99 ½)
July Soybean Meal closed $4.1 lower ($410.8), August $2.4 lower ($408.4) & Dec $1.3 higher ($401.2)
July Soybean Oil closed 30 pts lower ($68.67), August 8 pts higher ($64.88) & Dec 10 pts lower ($59.58)
Is the bull market in soybean oil showing signs of cracking? July bean oil moved into new high ground just above the 70 cent level only to sell off by 180 pts while managing to finish 70 pts off of the day’s low. I’m told China is washing out some previous purchases in favor of buying palm oil. The tout there is the bean oil spread vs. palm oil just got too high in favor of bean oil. Adding to the day’s bearish price action in the soybean complex were July soybeans stumbling just above the $16.00 level and the soybean meal market continuing not finding any buying interest. Adding insult to injury are interior soybean processors breaking their basis. Bull spreads suffered noticeable losses throughout the complex. The disappointing NOPA crush data from yesterday is promoting thoughts the USDA will lower the old crop crush in next month’s S&D report leading to a slight hike in the old crop carryout.
July soybeans are flirting with interim sell signal territory at the $15.75 level. As much as I think the $410.0 level starts support for July soybean meal the price action leaves a lot to be desired. As I mentioned earlier the price action in soybean oil may be showing signs of cracking the ongoing bull market.
Daily Support & Resistance – 05/19
July Soybeans: $15.55 – $15.90
July Soy Meal: $405.0 – $418.0
July Soy Oil: $67.00 – $69.90
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