Unlike Corn, soybean yield by Pro Farmer was 51.7 bushels per acre which put production at 4.535 billion bushels. The yield number is .2ths higher than August USDA estimate and the production number is maybe a record. Nov 22 soybeans closed up 29 cents on Friday and Monday they closed down 23 cents. Today after being down almost 30 cents more, the market rallied back to close the day 5 cents lower from the previous settlement, and 24 cents of the Tuesday morning low. Where to from here? Soon it will be harvest pressure versus a potential downgraded crop that might be revealed in the September 12th WASDE report. Do beans follow corn higher? Trade the charts is my best answer. Yesterday the USDA announced via press release they were suspending the Thursday export sales report due to hiccups in their new reporting system. That leaves us with Flash sales announcements and the cash market for fresh demand news. Demand for beans is starting to pick up but will it sustain further out on the calendar? This AM, the USDA reported a sale of 264,000 MT of soybeans for delivery to “unknown destinations” during the 2022-23 marketing year. Today’s announcement follows three daily soybean sales totaling 773,000 MT to China and unknown destinations last week. Technical levels for the remainder of the week come in as follows for November soybeans. Support is down at 14.06 and with a close under this level, 13.86 is next. A close under 13.86 this week in my view would create some technical damage and could push the market down to 13.39 to 13.31 in my opinion. Resistance is up at 1459.2, then 14.68. A close over this level and I see the market trading up to 14.77. A close over these resistances and I think the market can make a run to 15.36. That level represents a 50 percent retracement from the Spring high to the July low.
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