The bull camp gets the early advantage in the S&P 500, with an upside retracement target coming in at 1977.70.
For Natural Gas I think 4.11 will act as initial support today and below there the 4.06 price level. As for soybeans The 2014/15 main crop harvest is already underway, and reports are that there may be over 100,000 tonnes of cocoa stockpiled…
On top of weekly sales Thursday, private exporters reported a sale of 115,000 tonnes of US soybeans to China. Weekly export sales for soybeans came in at 2.565 million tonnes.
Soybean oil and palm oil bounced yesterday after better than expected China economic news, but December Soymeal closed lower and also pushed to new contract lows.
Heading into the weekend I expect to see 9.69 act as resistance in the Nov Soybeans today and 9.63 as initial support on the downside.
The overarching theme that this market can’t get away from is the reality that Weather leans bearish.
Key technical area to keep an eye on right now I think are 10.08 as resistance on the November Soybeans and 333.5 resistance on the December soymeal.
In their first estimate of the new 2014/15 season, the Secretary of Agriculture for the state of Parana is estimating record large soybean acreage this year of just over 5 million hectares, with harvest of up to 17.1
A relatively quiet US economic calendar in the coming week is also likely to bring about position adjustments ahead of next week’s FOMC meeting that could come with a modest shift in language.
Cash markets have caught up to the October futures but we think it will take a continued strong tone in the cash market and beef market to sustain the run.