RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

November soybeans are trading 2 cents higher this morning. Outside market forces are mixed with a slightly higher US dollar. China Dalian futures were down 0.65%, trading down to the lowest level since June 5. Palm oil futures in Malaysia are up 1.45% making new six-month highs. There were no soybean deliveries today with the total deliveries at 249 contracts, soymeal deliveries at 75 contracts (1,091 total), and soybean oil deliveries at 399 contracts (3,291 total). China National Grain and Oils Information Center raised their 2017-18 soybean import estimate to 95 million tonnes versus the USDA estimate of 94 million tonnes. They see the hog breeding industry with high margins to continue to spur expansion and drive up demand. US exporters announced the sale of 264,000 tonnes of soybeans to China on Friday.

NOV SOYBEANS: The major trend has turned down with the cross over back below the 60-day moving average. Studies are showing positive momentum but are now in overbought territory, so some caution is warranted. The market’s close the first swing support could weigh on the market. Overall, the market is short term friendly and targets retracement rallies to 9851/2. A close over 9881/2 suggests a stronger bull wave to 1010-1008. Friday’s drop warns for negative trade and a close under 962 needed to rekindle bear trend forces. 

Nov ’17 Soybean Daily Chart

Nov '17 Soybean Daily Chart

Manon Lasserre