The January Soybeans continue to make a new highs for the Year
The January Soybeans made a new high for the Year at 13.782, as well as a new high close for the Year at 13.730. Coming into trade today good weather in Brazil and news that China had raised interest rates were seen as a bearish factor. However, continued concerns over the tight and getting tighter balance sheet as well as concerns over the long term weather for Argentina helped push the Soybeans up over 20 cents. The soy complex has been led by the Soy Oil which also made a new high for the year. From a technical standpoint this is rather bullish, however it is important to note that we are experiencing thin holiday trade and with less then normal volume technical indicators may be less reliable. Either way, the new highs could suggest that we could now continue to move higher with sights set on 14.000.
Fundamentally the Soybean market got a major boost when Congress approved a $1.00 per gallon tax credit for Biodiesel. This is significant because this had expired a year ago and had put a major damper on Biodiesel demand. The Soybeans have a tight balance sheet, which could potentially get tighter.
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Good day, and good trading!
Ted Seifried (321) 277-0113 or tseifried@zaner.com
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