This is a sample entry from Tom Dosdall’s newsletter, Technical Ag Knowledge, published on Wednesday, November 23, 2016.
In case there was any doubt about what is driving soybeans, check out chart below for Dec Soybean Oil. Short term demand from China as a substitute for palm oil remains extremely strong. March spreads remain steady which signals the market expects demand for oil could potentially trend steady into this delivery period. When you get out to July and taking into account South American supply the spreads tighten considerably
Soymeal is not following suit as a byproduct of the crush. Will the abundance of this supply help to keep a lid on corn/wheat as a cheap feed substitute? Can crush margins remain profitable at this pace? Something we will be following as we get back to the markets next week.
Have a safe and Happy Thanksgiving!
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