Soybean market breaks the $12 mark Thursday

• Corn = 1.93 million metric tons vs. the trade’s expectations of between 800,000 mmt. and 1.60 mmt. Unknown was the biggest buyer.
• Soybeans = 1.01 mmt. vs. trade’s expectations of 400,000 mmt. to 900,000 mt.
• Wheat = 561,400 mt.
• Soybean meal = 261,200 mt.

Because federal government agencies will be closed on Thursday, December 24, the scheduled Export Sales Report for the week ending December 17 will be published on Wednesday, December 23, at 8:30 a.m. EST.

Bob Linneman, Kluis Advisors, says that the soybean market may be making a statement, after it failed to push through the $12 mark Wednesday morning.

“It appears the bears are more willing to be big sellers against resistance. They are likely placing stops just above the old highs. What has changed in the last week to push soybean prices 50¢ higher than the low seven days ago? Daily export sales reports remain quiet. South American weather has maintained expected forecasts. The most likely catalyst is that some analysts are starting to update production estimates in South America. These updates are proving the early-season dry spots were a problem and, in some areas, continue to be a problem,” Linneman stated in a daily note to customers.

Linneman added, “The likelihood of the $12 mark holding as resistance for much longer seems small if the headlines remain constant. The bull camp started gaining momentum when the bears failed to break January futures below support at the 30-day average.”