By ADM Investor Services Research Team
January soybeans posted an eighth straight negative daily result by finishing near the lows of the day as fund selling continued to pressure the market. The selling pushed the market down to the lowest level since September 9th. Good weather in South America has kept the market on the defensive while soybean oil is pushing moderately lower and reached its lowest level since October 15th. Meal traded slightly higher early on, but fell back towards unchanged levels and closed near new contract lows. Palm oil prices were lower today which weighed on bean oil prices. The European Union soybean imports for the July 1st to Dec 1st time frame reached 5.7 million tonnes, up 1% from last year’s pace. Soybean export inspections for the week ending November 28th came in at 1,547,507 metric tonnes from trade expectations for 1.4 to 2.0 million tonnes. Cumulative inspections year-to-date are 15,941,477 metric tonnes which is 20.2% above last year. This is 33.0% of the USDA’s forecast for the 2019-20 marketing year versus the five year average of 37.9%. Brazilian soybean exports last month came in at 5.158 million tonnes which was virtually unchanged from October’s result, but was more than 7% above last year’s total.
While the soybeans and wheat markets posted moderate losses, March corn managed to push its way up to the highest level since November 15th before finishing Monday’s trading near unchanged levels. The market is trading above the key downtrend channel resistance which is a bullish technical development. The US dollar is down sharply on the session while the US stock market is also down sharply on the day. Corn export inspections for the week ending November 28th came in at 428,856 tonnes as compared with trade expectations for 500,000 to 700,000 tonnes. Cumulative inspections year-to-date are 6,039,038 tonnes which is 57.6% below last year. This is 12.9% of the USDA’s forecast for the 2019-20 marketing year versus the five year average of 19.0%. Brazilian corn exports last month were 4.288 million tonnes which was down more than 29% from October’s total but up more than 17% from last year’s total.
March wheat kept within an inside day session before closing Monday’s trading session with a moderate loss as short-term technical indicators are a bit overbought. March Kansas City wheat also posted a moderate loss, but did so after opening higher on the day. March Minneapolis wheat opened higher on the session but finished Monday with a modest loss. The US dollar is down sharply on the session but that did not provide much in the way of support with negative action in the US stock market and concerns for a sluggish economy ahead. Wheat export inspections for the week ending November 28th came in at 246,988 tonnes from trade expectations for 400,000 to 600,000 tonnes. Cumulative inspections year-to-date are 12,615,422 tonnes which is 19.2% above last year. This is 48.8% of the USDA’s forecast for the 2019-20 marketing year versus the five year average of 47.7%. The European Union wheat exports for the July 1st to Dec 1st time frame reached 1.1 million tonnes, up 58% from last year’s pace.
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