Soybean Futures Showed Relative Strength
Price action: March soybean futures rallied 1 1/2 cents to $13.20 1/2, despite trading lower most of the session. March soybean meal dropped $2.10 to $393.80, settling near the session’s midpoint. March soyoil rose 15 points to 48.66 cents.
Fundamental analysis: Soybean futures showed relative strength to the flailing wheat and corn markets, following through on Tuesday’s gains. The U.S. dollar index sinking to the lowest level in five-months helped support prices on Wednesday. Lacking export demand despite a weaker dollar and down trending prices, evidenced by no daily sales, seems to be weighing on futures prices.
Improving rainfall is expected in northern Brazil during the late weekend and next week, with Bahia, Piaui, Tocantins and northern Minas Gerais receiving greater than usual rainfall in that period, according to World Weather Inc. Mato Grosso do Sul and southern Goias will receive rain this weekend and into early next week, though more rain will be needed for more than temporary improvements, the forecaster says.
Technical analysis: March soybeans continue to trend lower on the daily chart despite the recent bounce. Bulls are seeking to hold support at $13.11 3/4 then $12.98 1/4 on continued weakness, while resistance lies at $13.21 then $13.29 1/2.
March soybean meal futures saw profit taking early on but closed well off session lows. A downtrend persists on the daily bar chart, with bears targeting support at $392.10, $389.00, then $384.70. Meanwhile, resistance stands at $397.00, then the 20-day moving average at $399.30.
March bean oil futures saw corrective buying following a fresh seven-month low early on. Further selling targets support at 48.50 cents with backing from 47.57 cents. Bulls are targeting resistance at 49.62 cents, then the psychological 50.00 cent level.
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