Soy Complex Recap - 12/9/2016

December 9, 2016 9:36AM CST

January Soybeans finished up 10 1/2 at 1037 1/2, 2 off the high and 16 up from the low. March Soybeans closed up 10 3/4 at 1048 1/2. This was 16 1/2 up from the low and 1 3/4 off the high.

January Soybean Oil finished down 0.32 at 36.94, 0.52 off the high and 0.31 up from the low.

January Soymeal closed up 5.1 at 318.8. This was 6.8 up from the low and 1.8 off the high.

The USDA Supply/demand update for soybeans was considered slightly bearish as ending stocks came in at 480 million bushels from trade expectations of 470 million bushels (range 428 to 514) and last month's estimate of 480 million bushels. World ending stocks came in at 82.9 million tonnes versus trade expectations of 81.4 million tonnes and last month's estimate of 81.5 million tonnes. The Brazilian soybean crop was estimated at 102.0 million tonnes compared to last month's estimate of 102.0 million tonnes. The Argentine soybean crop was estimated at 57.0 compared to last month's 57.0 million tonnes. The report left exports unchanged at 2.050 million bushels and the trade looking for an increase of 10 to 20 million bushels tied to recent Chinese demand. World ending stocks grew by 1.3 million tonnes with increases in world production. The soyoil used for biodiesel was raised by 250 million pounds to 6.2 billion pounds which was expected after the EPA announcements. The market digested the USDA report and rallied into the close with January soybeans closing at 1037 1/2 up 10 1/2 cents on the day. The mid-day forecasts for Argentina continue the dry trend for the next ten days with the extended forecasts split on coverage and amounts. The GFS model is wetter, while the EU model has limited rains in the longer term. US exporters announced the sale of 132,000 tonnes of soybeans to Unknown destinations. Resistance for January soybeans is at 1041 1/2 with 1002 1/2 and 987 3/4 as next targets if the weather shifts to normal for Argentina.

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