Afternoon Soybeans: Relief rally for the soy complex.
<div class=\"default-font-wrapper\" style=\"line-height: 1;font-size: 12pt; font-family: Verdana, Geneva, sans-serif;\"><div style=\"line-height: 1;\"><span style=\"font-size: 12pt; font-family: Verdana, Geneva, sans-serif;\">The soybean market finally caught a bid and reversed higher out of a new contract low in an overdue corrective trade on the charts. January beans settled 11.25 cents higher, which was nearly 18 cents of the newly established contract low. The Jan-March bean spread briefly extended its rally to a small inverse before encountering liquidation which ended with an outside day key reversal on the chart. Strength in the nearby bull spread has been reflective of strong nearby demand so it will be interesting to see what if any type of follow through today’s reversal finds. Beans gained on corn and bounced the new crop ratio back up to 2.25%.<br> <br>Weekly export sales were all within their respective ranges of expectations. Old crop bean sales of 1.424 mmt were led by China and unknown. In the daily reporting system, the USDA flashed 152 tmt of old crop and 75 tmt of new crop beans sold to unknown.<br> <br>The weather forecast for the Southern Hemisphere remains favorable for crops with ample moisture across most of Brazil. There will be some near term drying stretching across portions of S Brazil, Argentina, and Uruguay which could lead to eventual crop stress. However, temperatures are moderate and timely rains are expected to return later in the month.<br> <br>In the product trade, oil and meal took turns leading the oil share today with both ending with upside reversals (including from a new contract low in meal) that helped to support the soybean recovery. Weekly meal sales were solid at 262 tmt but oil sales were disappointing relative to recent strong sales reports. Board crush margins gained 4 cents to $1.02/bushel.<br> <br>Elsewhere in the news, the Buenos Aire Grain Exchange reports Argy soybean planting advanced 11.5% on the week to 76.6% complete. The crop is rated 99% G/E and 1% P/VP, unchanged from a week ago. Corn planting advanced 10.2% on the wek to 65.8% complete. The crop is rated 98% G/E and 2% P/VP, unchanged from a week ago.<br> <br>Brazil soybean production is forecast to reach 170.41 mmt, up 4 mmt from prior outlook, with total corn production seen at 129.27 mmt, up 1.7 mmt from prior outlook, according to Patria Agronegocios.<br> <br>The US generated 732 mln biodiesel (D4) blending credits in November vs. 784 mln in October according to the EPA. <br> <br>Old crop bean sales of 1.424 mmt were up 21% from the previous week, but down 27% from the prior 4-week average. Exports of 1.686 mmt were down 9% from the previous week and 23% from the prior 4-week average.<br> <br>Old crop meal sales of 262 tmt were up 48% from the previous week, but down 14% from the prior 4-week average. Exports of 375,800 MT were up 27 percent from the previous week and 19 percent from the prior 4-week average. <br> <br>Old crop bean oil sales of 6 tmt were down 91% from the previous week and 90% from the prior 4-week average. Exports of 13,000 MT were down 18 percent from the previous week and 30 percent from the prior 4-week average.<br> <br>The USDA weekly drought monitor shows 57% of US corn area is in drought up from 54% a week ago and 44% a year ago, 51% of soybean areas is in drought up from 49% a week ago and 48% a year ago, and 29% of winter wheat area is in drought equal to a week ago and down from 32% a year ago.<br> <br>Indonesia's economic minister Thursday said the government will raise their crude palm oil export levy to 10% from the current 7.5%, the move is a means to finance its planned higher biodiesel subsidies. The new biodiesel blend rate of 40% starts January 1st. <br> <br>Soybean Basis: <br>Location Spot <br>US Gulf steady +91 <br>Cedar Rapids, IA steady -15f<br>Mankato, MN steady -15f <br>Decatur, IL steady +5f <br>Decatur, IN steady +10f <br>Columbus, OH steady -15f </span></div></div>