Soybean Trading Summary

Soybean Complex Market Recap: 26 August 2011

Nov Soybean finished + 30.75 at 1423.50, 2.50 off the high and 37.25 up from the low.

Jan Soybean closed + 29.50 at 1432.75. This was 36.25 up from the low and 2.50 off the high.

Dec Soymeal closed up 5.9 at 381.1. This was 8.5 up from the low and 3.9 off the high.

Dec Soybean Oil finished up 1.19 at 57.32, 0.03 off the high and 1.46 up from the low.

After some choppy and lower trade early, Nov Soybean saw a major technical break-out to the Northside and moved sharply higher on the day.

The rally pushed the market to new contract highs and nearby futures to near the May highs.

Economic fears and ideas that the market could see a speculative Long liquidation day for commodity markets plus weakness in equity and energy markets early helped to spark the early weakness.

A recovery in outside market forces and talk that yield could slip below the August USDA report helped to support the solid recovery and rally to higher on the day.

Traders are expecting another decline in crop conditions ratings of 1-2% for Monday's update from 59% posted last week.

This suggests 57-58% rated good to excellent as compared with 60% on July 31st which is about the time of the USDA crop production survey.

A lack of rain in the forecast for central Illinois plus talk that the Pro Farmer tour results after the close could show a yield outlook lower than the August USDA estimate helped to support.

December meal also pushed sharply higher on the day and moved into new contract highs.

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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