Commentary
Soybeans have been firm for the most part all week and finally were able to break out above the rece4nt highs at 1334 to trade up to the next levels or resistance in the low 1350’s. (See Chart) Trend and Index following funds added somewhere 13 to 15K contracts the last few sessions to add to the bullish fervor into the weekend. Dec meal also surged over 16 handles that saw December meal close over 440 today. Weather forecasters in Brazil have taken out needed rains into the weekend in Brazil as models shifted drier. Remember its early. We have a crop report next Thursday with the fear leading into it that the USDA snips yield again amid slightly lower production, that decreases domestic ending stocks. That potential along with Brazilian weather that leans friendly along with the story that Argentina is almost out of beans to crush in my view made buying beans and meal an easy decision by funds into the weekend. We are at pretty good chart resistance here and approximately $1.00 from the October lows on the weekly continuous. For Jan beans next week, support is 13.47. A close below and its 13.32. A close under and its 13.04 the 200-week moving average. Resistance is at 1361 next week. A close above and its 1377. A close above 13.77, and it is 14.03, which is the 50 % retracement from the 2023 high low.
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Sean Lusk
Vice President Commercial Hedging Division
Walsh Trading
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