Soybean Commentary - Just My Opinion

Farm Futures suggests next years soybean acreage will be 90.1 million acres vs. 90.1 million last year

Weekly Soybean Export Sales old crop 600 K 1.000 M T. expected new crop 200-400 K T. expected

Weekly Soybean Meal Export Sales old crop 100-300 K T. expected New crop none expected

Weekly Soybean Oil Export Sales old crop 8-25 K T. expected new crop none expected

Soybean meal continues to carry the ball for the soybean market. Argentine weather worries as well as US export prices staying competitive in world export circles (not as competitive as they were one week ago) are the drivers for the meal market. Bean oil continues to get the short sideof inter-market within the complex as palm oil continues to weigh on most other veg oil prices.

Interior soybean processor bids continue to show a firm tone. River bids are steady after a run of strength. Logistical problems are expected to ease as the Midwest goes into a thaw. Gulf prices appear to be easing. Despite the strength in the flat price soybean spreads eased within the crop year as well as old crop easing vs. the new crop. The interior meal basis is trying to improve, both truck and rail. The export market is fully steady while maintaining recent strength. Meal spreads ran mostly steady within the current crop year while old crop gains on the new crop.

Meal continues to be the deal for soybeans. Immediate resistance for March meal is the mid-low $330.0s. If this market wants to get wild and crazy $338.0 cannot be ruled out. Soybeans have yet to take out their interim high ($9.77 March) of the past few weeks. If and when they do a run to the mid-high $9.80s - $9.90 cannot be ruled out. Bean oil continues to struggle; the season low of $31.85 March is now not out of the realm of possibility.

Daily Support & Resistance for 01/18

March Beans: $9.60 - $9.80

March Meal; $323.0 - $332.0

March Bn Oil: $32.05 - $33.00

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