Soybean bears have been taking large swings at old-crop beans, in return heavy bull-spread unwinding and more serious "technical" damage has taken place the past few days on talks of greater "imports." In fact the bears have peeled close to $0.70 cents off the contract (from last week's high) in just the past 6-days. From what I hear imports are now most certainly going to end up being at or above 80 million. Not only are soy supplies coming in from Brazil and Argentina at a brisk pace, but as I indicated yesterday, there is talk that we could eventually see 35 to 40 million bushels of soy drifting down from our neighbors in Canada. The question now is HOW will the USDA elect to lay their cards on the table? Will they play only their bullish cards, like increased exports and or increased crush? Will they hold back some of their more bearish cards, like increased Brazilian
Better than expected Chinese data has given the soybean market a bit of a reprieve. Official customs data showed was soybean imports of 6.5 million tons last month up from 4.62 million tons in March. It will be interesting to see if old-crop beans (CLICK HERE for my daily report...) can stay above nearby support at $14.20 and if new-crop beans ( ) can keep their head above the $12.10 area.