A solid base of support should contain breaks at $294 to $297 per ton. A further rally into the $307 to $312 area should run into plentiful selling. Soybean crush is expected to continue strong with Monday's National Oilseeds Processors Association (NOPA) report expected to see crush at 172 million bushels (mb), compared to 167.2 mb in June and 168 mb in July of 2019. The recent USDA report estimated China's soybean crush to rise by 3 million metric tons (mmt) to 98 mmt -- another bullish surprise.
December Soybean Oil:
As world vegetable oil supplies tighten, with palm oil again nearing the highest level since January, soybean oil futures have rallied as well, closing higher in six of the past eight weeks. India, the world's largest vegetable oil importer, has ramped up palm, bean and sunflower oil imports versus a year ago, fueled by the reopening of restaurants and hotels.
While December bean oil could be getting a bit overbought, it appears this move higher could continue. A target for December oil is likely in the 33 to 34 cents per pound area, as that seems to be the next area of solid resistance.
Comments above are for educational purposes and are not meant to be specific trade recommendations. The buying and selling of commodities or commodity futures involves substantial risk and are not suitable for everyone.
Dana Mantini can be reached at Dana.Mantini@dtn.com
Follow him on Twitter @mantini_r
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The Link LonkAugust 17, 2020 at 08:58PM
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December Corn Faces Solid Resistance, Bearish Supply - DTN The Progressive Farmer
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