Soybean Report, 02/12/2016

Friday, February 12, 2016

Nice rally yesterday on technical buying and some rumors of additional Chinese buying, which I never found confirmation of existing. The minor pull back overnight will take us into the morning trade start and see if we can rally to close the week with green on the screen. Outside markets though are mixed as oil has found a buyer and is currently a $1.50+ higher. The US$ is back above 96 points on the index and thus is not a motivating factor in US origin at the moment. Stocks may generate positive numbers as well since the EU markets have moved higher today and ours look poised to follow. The last day of GS roll ended with tighter spreads in the nearby and a touch more bull spreading occurring this morning. Producer selling or rather the extreme lack of it at these lower prices is keeping a lid on carry charges from forming. Basis is steady at best in most areas with a weaker tone due to lack of river bids, but some processors do find it difficult to originate beans to fill empty slots or additional crush sales. Most are awaiting the ‘dam breaking’ at some point this summer when a new crop is made or a rally triggers sales en masse. Palm oil continues to be a positive for the complex as it rallies again today taking bean oil with it. We should be able to trade both sides, but will be influenced by macro events to move today.

Unless otherwise noted, the posts on this blog should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any particular trading strategy, promotional element or quality of service provided by INTL FCStone Inc. or its subsidiaries. INTL FCStone Inc. is not responsible for any trading decisions taken by persons viewing this material. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by INTL FCStone Inc. or its subsidiaries. Reproduction without authorization is prohibited. All rights reserved.

Market Intelligence Free Trial