Soybean: Pre-Opening Soy Complex Market Report
July soybeans were up 1 3/4 cents late in the overnight session. Chinese soybean futures were down 0.1% overnight, and Malaysian palm futures were up 0.5%. Outside market forces look negative today, as a sharp jump in the US dollar and weaker energy and metal markets could pressure prices. A lack of a negative reaction in China's commodity markets after tightening measures by their Central Bank plus ther soybean market's recovery from a sharp break yesterday helped to support a bounce in futures overnight, despite a sharp rise in the US dollar. One of the major concerns for commodity markets in recent weeks has been the possibility of weakening demand from China. However, the economic news of strong retail sales (up 16.9%) and industrial production (up 13.3%) helped to ease those fears and provide some underlying support. China's soybean production is expected to reach just 14.3 million tonnes this year, down from 15.2 million last year, and this should boost import demand to 58 million tonnes from 54 million this season. India imported 664,133 tonnes of vegetable oil in May, which was up 18.8% from last year and up from 475,123 tonnes in April. For the first 7 months of the season, India has imported 4.3 million tonnes, 10% below last season's pace. Yesterday July soybeans broke out below the recent trading range to move to their lowest level since May 18th., but the market managed to recover near half of the day's losses with a late bounce. Talk of good weather for the Midwest soybean crop for the next week, weakness in corn and ideas that China will continue to tighten monetary policy were all factors to help drive the market sharply lower. Planting progress jumped to 87% complete this week from 68% last week, and the crop was rated 67% in good to excellent condition. Crops in the south are rated lower due to dry and hot weather there over the past few weeks. There remains a hot and dry outlook for the delta, and this has helped provide some underlying support. Ideas that any corn not planted yet may shift to soybeans has been a negative force. For the NOPA report, monthly crush for May came in at 120.3 million bushels, below trade expectations near 121.5 million and below the April crush at 121.3 million bushels. Soybean oil saw lows early yesterday and closed mixed to slightly lower, while meal closed sharply lower on the session. South Korea is tendering for 30,000 tonnes of non-GMO soybeans.Soybeans Blog Topic: __W. D. Gann Soybean Charts___
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W. D. Gann Blog -- http://wdgannmatrix.blogspot.com/
Soybeans Blog -- http://soylive.blogspot.com/
Commitment of Traders Blog -- http://cotlive.blogspot.com/
Beans COT -- http://www.cotlive.com/COT/commodities/s1.htm
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