Argentine Weather Leans Drier for January Soybeans

December 19, 2017 9:31AM CST

Monday morning, traders saw January soybeans open 2 1/2 cents higher with China Dalian soybean futures up 0.38%. This market seems to be finding support on a slightly drier outlook in the two-week forecast for Argentina. We did see some decent rains of 0.75 – 2.00 inches with 50-70% coverage, however some models are pulling back on amounts and coverage in the forecast for the next two weeks. January soybeans settled at 967 ¼ on Friday, down 22 ½ cents on the week while soybean meal settled at 320.60, down $11.10 on the week and January soybean oil settled at 33.16 down 0.46 points on the week.

Overall, January soybeans should find support to start the week with a slightly drier outlook in Argentina over the next two weeks. The rain over the weekend seems to have already been priced in after last week’s sell-off and there have been rumors of Chinese interest on the break late last week securing 4 to 6 cargoes. Close in support is at 963 ¼ by 960 ½. Resistance is at 976.

Soybeans Jan '18 Daily Chart

Soybeans_Jan18_Daily_Chart

RJO Futures | 222 South Riverside Plaza, Suite 1200 | Chicago, Illinois 60606 | United States
800.441.1616 | 312.373.5478

This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.