The ability to hold in the 3-4 week consolidation above 1020 for January soybeans is impressive. This will become more difficult next week if the shift to a wetter weather pattern for Argentina verifies, and the focus of attention shifts to US planted area for next year. Soybeans are cheaper to plant than corn, and price relationships with corn, wheat, and cotton favor shift to soybeans. US ending stocks are at a 10-year high, and world stocks at a record high. January soybeans held support at 10184 yesterday and rallied. Demand news, however, remains bullish as well and this is keeping fund traders as active buyers. Weekly exports sales came in at 2.008 million tonnes vs. trade estimates of 1.2-1.6 million tonnes. Informa analytics estimated soybean acreage for 2017-18 at 88.89 million acres compared to last months 88.6 million acres. This is 5.19 million acres larger than last year. China’s currency fell .6% yesterday, reaching the lowest level since June 2008 which in turn is increasing the cost of imports. There is speculation that the Chinese have been buying soybeans aggressively in anticipation of further weakness in the Yuan. As of December 8th, cumulative soybean sales stand at 80.8% of the USDA forecast vs. the 5-year average of 41.7%. Support is at 1005 and resistance comes in at 1036 and 1041.
Series 3 Licensed
Market Strategist II
Tony majored in Economics at Eastern Illinois University. He performed his thesis on the market price of corn in the market and the factors that affect it. Tony was drawn to futures trading because of the opportunity to have financial gains in an economic environment. He prides himself on working with customers one-on-one and developing a trading strategy based on the client's needs and wants.