The Hightower Report

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NEAR-TERM MARKET FUNDAMENTALS: Hot weather in the Eastern Corn Belt this weekend with no rain in the forecast until Wednesday has helped futures build a weather premium in for the tail end of the growing season. Traders remain concerned that many areas of Indiana and Ohio were too dry recently and any filling soybeans which are not maturing could have seen a negative impact on yield. Hot weather in the southern Midwest along with sudden death syndrome in Iowa are also seen as trouble spots. Traders will be monitoring the weekly crop progress report tonight to see if the crops continued to deteriorate in the past week. Last week, 64% of the crop was in good to excellent condition as compared with 69% last year and 57% as the ten year average for this time of the year. The USDA currently projects a 44 yield, the same as last year. November soybeans pushed sharply higher for the second session in a row on Friday closing 22 cents higher for the week. This took the market to its highest level since August 19th. Impressive gains in equities added to the positive tone in a number of markets, along with the announcement of a fresh sale of 120,000 tonnes of US soybeans to China by the USDA. Basis levels in the interior were mixed. Early harvested soybeans from the Delta moved onto the cash markets at an accelerated pace last week and that brought a downturn in basis levels at the Gulf during mid week through Friday. A Taiwanese buyer bought 57,500 tonnes of US soybeans for delivery during the first half of November. The Commitments of Traders Futures and Options report as of August 24th for Soybeans showed Non-Commercial traders were net long 130,965 contracts, a decrease of 8,029 contracts for the week. The selling trend is seen as a short-term negative force. Commodity Index traders held a net long position of 184,507 contracts, down 2,704 contracts for the week. In soybean oil, Non-Commercial traders were net long 31,659 contracts, a decrease of 16,219 contracts. Non-Commercial and Nonreportable combined traders held a net long position of 43,835 contracts, down 19,658 contracts for the week and the aggressive selling was seen as a short-term negative force. Commodity Index traders held a net long position of 100,297 contracts, down 5,506 contracts for the week. In meal, Non-Commercial traders were net long 67,425 contracts, a decrease of 3,777 contracts. Non-Commercial and Nonreportable combined traders held a net long position of 85,854 contracts, down 2,778 contracts for the week.

TODAY’S GUIDANCE: The COT reports showed that the turn in the weather came just in time for the markets to avoid a significant sell-off of the large net long positions from fund traders in the soybean complex. Yield forecasts will become increasingly important and without a drop of more than 1 1/2 to 2 bushels per acre from last months USDA estimate of 44, the market may struggle with hefty supply into the futures with a forecast for record world ending stocks based on the assumption that Brazil and Argentina production will be down 8 1/2 million tonnes from this year. This means the market is already counting on either a sharp reduction in yield in the US or a continued La Nina drought situation in South America.

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NEAR-TERM MARKET FUNDAMENTALS: After falling short of last week’s highs yesterday, November soybeans moved lower overnight. Traders said that a modest recovery in the dollar yesterday and follow through strength in the dollar overnight contributed to the stall in the rally in soybeans. Other contributing factors were said to be evening up ahead of Thursday’s big Crop Production report from the USDA along with a lower wheat market and an unchanged quality rating for the US soybean crop this week. The USDA’s Crop Progress report showed the good-to-excellent rating for soybeans at 66% as of Sunday, unchanged from last week and also unchanged from last year. The 10 year average good-to-excellent rating for this time of year is 59%. China’s soybean imports slowed in July to 4.95 million tonnes, down from the record import total in June of 6.2 million tonnes. However, despite the drop the July total is still the second largest monthly import total on record. Weather remains very hot in most soybean growing areas of the US, and this is expected to continue for the remainder of the week. Mid to upper 90s are expected in the central and southern tiers of the Midwest with low 90s expected in Most of Iowa, northern Illinois and northern Indiana. Temperatures are expected to be in the upper 90s in the Delta with 100 degree readings in northern Louisiana and southern Arkansas. The North China Plain needs rain and cooler temperatures would be welcome. Rain would also be welcome in central and western portions of the NE soybeans belt in China. August soybeans finished substantially lower yesterday, despite the fact that deliveries remain at zero for soybeans. The USDA announced a sale of 284,000 tonnes of soybeans to China yesterday for delivery during the 2010/11 crop marketing year. This week’s export inspections for soybeans were 7.131 million bushels, down from 10.659 million last week.

TODAY’S GUIDANCE: With weakness in other grains and outside markets today and the potential for negative news for Thursday’s reports, November soybeans could retreat to support back at 1015 or even 1005 over the near-term with 1029 1/2 as stiff resistance today. December meal support is back at 286.20. Soybean oil made new highs for the move yesterday and then retreated along with the rest of the soybean complex. Oil looks to remain the leader over the short term as soybeans and meal see liquidation pressure ahead of Thursday’s reports from the USDA. A lack of damage from the ongoing heat wave last week may divert attention back to the big South American supplies and next year’s projected jump in US ending stocks. However, if the USDA lowers China’s 2010/11 soybean production estimate on Thursday, or if this week’s heat is believed to be damaging the US soybean crop, this could be enough to generate renewed buying.

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NEAR-TERM MARKET FUNDAMENTALS: The set-back in wheat futures overnight helped to pressure the market as traders see wheat as the leader in the short-term. November soybeans jumped as much as 64 1/2 cents in just four trading sessions as some threatening weather for the crops in the south and a surge in wheat futures have helped support active fund buying. Talk of the overbought condition of the market and weather uncertainty were seen as limiting forces on the rally yesterday. The USDA reported a sale of 116,000 tonnes of soybeans for China (new crop) and 130,000 tonnes of US soybeans for unknown destination. Strong export demand has helped provide underlying support. The weekly crop conditions report showed that 66% of the soybean crop was rated good/excellent compared to 67% last week and 67% last year. The 10 year average for this time of year is 60%. Soybeans setting pods reached 53% as compared with 33% last year and 48% as the 5-year average. Crop progress this week depends on the location. Weather for Iowa, the northern half of Illinois and areas to the north look to get hit with “ring of fire” thunderstorms and temperatures in the 80′s and low 90′s. The hot and wet set-up looks favorable for crops in this region. However, rainfall looks low for the southern crops and temperatures are very high so crops in Arkansas, Missouri and the delta look to come under some stress. Tbis could lower yield potential for crops in the severe heat. St Louis looks over 100 today and Hutchison Kansas was a record high 109 yesterday. November soybeans closed slightly higher on the session yesterday but 19 1/2 cents from the early highs. Funds were active buyers early to support the market, but long liquidation selling emerged on the early rally and there was a lack of much commercial buying interest as the market drifted lower for much of the session. Talk of rain in Iowa yesterday and rain in the forecast for the delta for later this week helped to pressure the market off of the highs as hot and wet weather is seen as mixed to generally positive for the developing crop. Traders said that a sharply higher crude oil market along with ideas that China’s economic growth could accelerate were supportive to soy oil. This may be particularly supportive to oil since China remains in a trade war with Argentina that is switching soybean oil export business to the US. This week’s export inspections for soybeans were 5.9 million bushels, down from 7.1 million last week. Total inspections to-date stand at 95.6% of the USDA’s projection for 2009/10 versus the 5-year average of 93.9%. Inspections need to average 13.2 million bushels each week to reach the USDA’s projection.

TODAY’S GUIDANCE: Weakness in the face of another new low for the US dollar and strength in energy market suggests the market is in an overbought condition. The weather outlook is mixed to supportive for the short-term but the eastern Corn Belt looks cooler for the 6-10 day outlook. The southern mid-west/delta region weather is threatening to yield but some scattered rains could hit the region later this week. The psychology is turning more supportive but the market is overbought short-term.

TODAY’S MARKET IDEAS: The upside break-out left 1025 1/4 as upside objective for November soybeans and this target was hit before the weak close yesterday. Look for resistance today at the 1009 3/4 to 1013 1/2 zone with support back at 987 and 974. The reversal in December meal leaves 283.80 as short-term target. December soyoil buying support is 40.44 with 42.57 as next target.

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NEAR-TERM MARKET FUNDAMENTALS: Several factors suggest that the soybean market could struggle to add much more premium over the short-term including a less threatening weather outlook, news of a slowdown in unloading grain shipments in China and news of a much larger than expected net long position from fund traders in the COT reports. At the port in Dalian China an explosion at an oil pipeline has caused the closing of 80-90% of the shipping berths including iron ore and Agricultural imports. South Korea is tendering to buy 25,000 tonnes of non-GMO soybeans. Argentina crush in May jumped to 4 million tonnes, up 11% from last year. The market continues to find support from fears of stressful weather during the sensitive pod-setting period for US soybeans in early August. Traders are also concerned with the potential sharp drop in production of higher oil-yielding crops in Canada and Europe and from concerns for the sunseed crops in Russia. November soybeans posted a new high for the move early on Friday only to close lower on the session. The market ran out of buyers on the early advance and November soybeans pushed lower on the day before firming into the close. This came amid firmer bids for cash soybeans at the Gulf which traders said was in response to strong demand. While China is still a strong importer, spot basis levels in the US fell 10-15 cents in many locations due to increased producer selling. Evening up ahead of the weekend was considered a major feature on the day with some light to moderate activity in the old crop/new crop soybean spreads with old crop gaining on new crop on the day. Some forecasts call for hot and dry weather to last through the end of July and into early August, which was considered supportive on a day marked by profit taking. The weather forecast to start this week is far less of a concern for the soybean crop as the crop can do well in a hot and wet environment as compared with concerns for a hot and dry week ahead. The northern Corn Belt cools down for a few days and then temperatures jump back to the mid-90′s later this week. The ridge moves across the country in the next few weeks but there appears to be plenty of rains for the delta and southern half of the Corn Belt to see the potential for improving crop conditions ahead. Traders see a 1-2% decline in crop ratings tonight. The Commitments of Traders Futures and Options report as of July 13th for Soybeans showed Non-Commercial traders were net long 59,789 contracts, an increase of 58,094 contracts. Commodity Index traders held a net long position of 175,212 contracts, an increase of 5,932 contracts for the week. For meal, Non-Commercial traders were net long 60,185 contracts, an increase of 12,212 for the week. The Nonreportable traders were net long 15,102 contracts, an increase of 2,997 contracts for the week and this pushed the Non-Commercial and Nonreportable combined traders net long position to 75,287 contracts, up 15,209 contracts for the week. For Soybean Oil, Non-Commercial traders were net short 18,108 contracts, a decrease of 18,174 contracts for the week. The Nonreportable traders were net long 263 contracts, an increase of 7,367 contracts on the week. Commodity Index traders held a net long position of 104,171 contracts. This represents a decrease of 2,077 contracts in the net long position held by these traders.

TODAY’S GUIDANCE: A much wetter forecast for the drier areas of the US along with the COT report which showed aggressive buying and a hefty net long position from fund traders are forces which could pressure the soybean market over the near-term. Farmer selling is on the rise and prices are favorable and unless the rains in the forecast for the coming week do not materialize, the market may be close to a near-term peak. Some traders think there is too much rain in the forecast but crop conditions are likely to improve this week and next week if the weather comes in as expected to start this week.

TODAY’S MARKET IDEAS: Trend-following fund traders were aggressive net buyers of 57,660 contracts for the week to shift to a net long position of 34,057 contracts which is higher than expected. Selling resistance for November soybeans comes in at 986 1/2 with key resistance at 993 3/4. Look for set-back to at least 955 early this week. December oil support is back at 38.40. December meal looks vulnerable to a set-back to near 278.60 with selling resistance today at 289.20.

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NEAR-TERM MARKET FUNDAMENTALS: The market took direction from a bearish weather forecast to move sharply lower yesterday and pull some of the weather premium out. A relatively dry forecast for next week has helped relieve fears of ponding and yield loss from too much rain as traders see the first week of dry weather as a reason to suspect improving crop conditions. November soybeans pushed to the lowest level since June 14th even though export sales news was positive and monthly crush numbers were slightly above expectations. Soy oil followed soybeans lower while meal saw mixed results into early afternoon. Oil was pressured from increasing stocks. Some forecasters have added moisture in the Midwest on Sunday and Monday and again later next week, but the 6-10 day is still dry and a little cooler for the eastern half of the Midwest and Delta. Weekly export sales for soybeans were 308,300 tonnes for the current marketing year as compared with 53,200 tonnes needed each week to reach the USDA projection. Soybean oil sales were 45,500 tonnes as compared with 8,900 tonnes needed each week to reach the USDA projection for the year. China was 35,000 tonnes of the total. Cumulative export sales have reached 90.9% of the USDA projection for the season as compared with 66.8% as the 5-year average for this time of the year. The Census Bureau May crush total was 133.8 million bushels which slightly above expectations. Cumulative crush for the season has reached 78.5% of the total USDA forecast for the season as compared with 76.6% last year and 76.2% as the 5-year average after 9 months of the marketing year. The data suggests that both exports and crush could be revised higher in the next supply/demand report.

TODAY’S GUIDANCE: The market will need to see a significant yield threat on the horizon in order to expect any tightness in supply for the 2010/2011 season. World ending stocks look to swell to a record high level and US ending stocks will shift from relatively tight stocks of 185 million bushels this year (138 million last year) to a whopping 443 million bushels if yield comes in the same as last year. If there is a supply issue which might emerge to support, the continued buying from China of US soybean oil and the sharp loss in canola crops in Canada are factors which might support oil relative to meal.

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NEAR-TERM MARKET FUNDAMENTALS: The market appears somewhat concerned with the potential threat of heat in the southern US growing areas and too much rain in the north to finish plantings and this has helped to provide underlying support. In addition, a major loss of planted acres in Canada due to excessive rains for the planting season helped support the market and supported canola and oat prices this week with talk that canola plantings in Canada could be down 2-3 million acres. The rally in soybeans attracted selling pressure from traders who believe that the US weather is not too threatening with crop conditions already very good and critical weather for the crop not due until late July and into August. November soybeans rallied to the highest level since May 17th into the start of the day session yesterday but prices retreated into early afternoon, trading lower on the day prior to the close. Meal also turned lower during the second half of the session, with the July contract posting a sharp loss on the spread versus July soy oil. July meal also lost ground to the new crop December meal on the sell off. Traders said that a lower dollar helped spark the early rally along with a 2% drop in the good-to-excellent rating for the overall US soybean crop on Monday afternoon’s weekly update from the USDA. Crop conditions may be most vulnerable in the Delta according to one analyst who noted that dry spots are emerging and very hot temperatures are in the long term forecasts. The 6-14 day forecast models from the National Weather Service show above normal temperatures which are centered in southern Illinois by the end of the period. Heat looks to build into the weekend and into the middle of next week.

TODAY’S GUIDANCE: The heat in the forecast is not a negative force for crop conditions as long as there is plenty of moisture. This suggests that Midwest crops will do well with a week or so of hot weather but crops in the delta and far southern Midwest may see some stress. Last weeks USDA supply and demand report pegged 2010/11 soybean ending stocks at 360 million bushels with a yield of 42.9 bushels per acre. “If” weather turns poor and bad enough to pull the yield down to the same level of the 2008/09 crop (39.7 bushels per acre) it could take 2010/11 ending stocks from a somewhat burdensome outlook to just 112 million bushels with a stocks/usage of just 3.6%. Again, this will take a period of poor weather into the late July period but given the market action which suggests old crop supply is not as high as advertised and given the huge net short position of fund traders, we can not rule out the market building some weather premium in the weeks ahead.

TODAY’S MARKET IDEAS: The weak close yesterday pulls short-term support back to 911 1/2 for November soybeans with 925 and 936 3/4 as resistance areas.

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NEAR-TERM MARKET FUNDAMENTALS: A combination of bearish outside market forces and the outlook for a good start to the soybean crop in the US combined with more rumors that China is canceling or trying to move foreword import cargoes was enough to pressure the soybean market on Friday. July soybeans erased Thursday’s gains and then some on Friday amid a broad sell off in financial and commodity markets. Slower than expected export sales news for soybeans and good weather were seen as other forces to pressure the market. Traders see the threat of some hotter weather into the US Midwest next week but after good rains over the weekend at many Midwest locations and the forecast for hefty rain totals this week, many traders see warm and dry weather for a few days as a plus for the crop outlook and yield outlook for the season. The market will see the first weekly crop conditions report for soybeans this afternoon. The House approved a bill last week which will extend the US $1-per-gallon bio-diesel credit and traders will wait and see if the bill passes the Senate. The National biodiesel Board believes that the industry is now running at near 15% capacity since the credit was dropped January 1st. Soyoil used to produce bio-diesel in April reached just 130.065 million pounds which is still well short of the 2009 monthly high of 245.6 million pounds, the 2008 monthly high of 300.5 million and the 2007 high of 376.2 million pounds in August of that year. The Commitments of Traders Futures and Options report as of June 1st for Soybeans showed non-commercial-no CIT traders (trend-following funds) were net short 26,147 contracts increasing their net short by 5,764 contracts for the week. Traders see the fund selling trend as a short-term negative force. Commodity Index traders held a net long position of 171,182 contracts. This represents a decrease of 1,584 contracts for the week. For meal, Non-Commercial traders were net long 28,476 contracts, an increase of 802 contracts. Non-Commercial and Nonreportable combined traders held a net long position of 35,260 contracts, down 1,092 contracts for the week. In oil, non-commercial-no CIT traders (trend-following funds) were net short 25,122 contracts which was down 10,867 contracts for the week. This is seen as a sign of short-covering from trend-following fund traders and the buying is seen by many traders as a short-term positive force. Commodity Index traders held a net long position of 106,258 contracts. This represents a decrease of 2,402 contracts in the net long position held by these traders.

TODAY’S GUIDANCE: Rumors are that China may have canceled more than 10 shipments of South American soybeans and two shipments of US soybeans due to burdensome supply at China ports, lower crush margins in China and the lack of storage at ports. The surge higher in the US dollar recently is also seen as a potential negative force and this has been led by weakness in the Euro. About 9% of the US exports go to Europe. The market faces a surge higher in South American soybean supply for the months ahead and a decent start to the US crop. This could slow demand for US meal and soybeans on the world market. The delegation from Argentina in China has reported a lack of progress in their efforts to resolve the trade issues on soybean oil. And there is talk that China is preparing to hold off on Argentina imports for the rest of the year and China may also shy away from Argentina soybeans. Eventually, if the dispute is not settled this could be a supportive force. Unconfirmed reports of China canceling US soybeans plus more rain in the forecast in the US this week is a bearish set-up.

TODAY’S MARKET IDEAS: Selling resistance for November soybeans comes in at 904 1/4 with some light support at 893. A move under the May lows counts to 881 3/4 as next downside objective. Resistance for December meal comes in at 253.90 with 245.20 as next objective.

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NEAR-TERM MARKET FUNDAMENTALS: Weakness in outside market forces and concerns over the global economy if Europe struggles to recover from the debt crises sparked additional long liquidation selling pressures to grain markets overnight. Ideas that warmer weather and signs of some dryness ahead should help boost crop development was seen as a negative force on Friday and again overnight. China’s ministry of Commerce raised their estimate for China soybean imports in May to 4.79 million tonnes, up 36% from last year and up from 4.69 million as a previous forecast. Traders believe the increase is due to recent actions to slow imports of oil from Argentina which could boost the China crush pace. Sharp gains in the dollar and sharp losses in most other markets were credited with keeping a lid on soybean prices throughout the session on Friday. The dollar is again attracting flight-to-quality buying which we have seen at various points during the Euro-zone debt crisis. The National Oilseed Processors Association released its crush estimate for April on Friday morning and came in at 131.7 million bushels, about 5 million bushels below trade expectations, and this weak demand data added to the negative tone in the complex. The April crush rate is down from 149.627 in March and 134.115 in April, 2009. Soybean oil stocks were pegged at 2.811 billion pounds, up from 2.738 billion in March and 2.709 in April, 2009. The Commitments of Traders Futures and Options report as of May 11th for soybeans showed non-commercial traders were net long 39,782 contracts, a decrease of 27,644 contracts. This is an aggressive long liquidation pace for the week. The CIT Supplement showed Commodity Index traders held a net long position of 173,495 contracts, down 2,808 contracts for the week. In the disaggregated report, Managed Money traders reduced their net long position by a whopping 33,833 contracts for the week to hold a net long of 43,340 contracts. The selling trend from large traders is seen as a short-term negative force. In meal, non-commercial traders were net long 33,760 contracts, a decrease of 6,893 contracts. Non-commercial and non-reportable combined traders held a net long position of 44,833 contracts. This represents a decrease of 7,362 contracts in the net long position held by these traders. For soybean oil, non-commercial traders were net short 2,656 contracts, an increase of 748 contracts. Trend-following fund traders (Non-commercial no CIT) increased their net short position slightly on the week to 16,776 contracts. The July soybeans pushed to the lowest level since March 31st overnight on weakness from outside markets and what appears to be a good start to the crop.

TODAY’S GUIDANCE: The short-term trend is down and the outlook for a sharp increase in US and world ending stocks appears to be the foundation for the bear case. In addition, traders see the crop off to a fast start and see good planting weather ahead to dry up fields. Some Midwest corn fields are flooded and either replanting or a switch to soybeans could be seen as a bearish force.

TODAY’S MARKET IDEAS: November soybean selling resistance comes in at 925 and 929 with 911 1/4 as some support. Keep 903 1/2 and 875 as next downside objectives. Selling resistance for July soybeans is 954 1/4 with 931 1/2 and maybe 895 1/2 as next downside objectives.

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NEAR-TERM MARKET FUNDAMENTALS: Strong seasonal buying support and continued buying from funds and specs supported the early rally yesterday to push July soybeans to the highest level since January 12th. However, the lower close is seen as a bearish technical development for the market. In addition, technical indicators are showing an overbought condition and open interest is relatively high. Traders indicate that the spread differential between November soybeans and December corn does not show an advantage to corn like it did just one month ago and that this would indicate that producers are likely to move to soybean plantings when corn plantings are complete. In some years, dry weather at this time of the year could lead to extra corn acres at the expense of soybeans. This week’s export inspections for soybeans were 8.03 million bushels, down from last week but in line with the average needed each week to reach the USDA’s export projection for 2009/10. Total soybean export inspections to date stand at 89.5% of the USDA’s projection versus a 5-year average of 81.2%. Statistics Canada reports that farmers in Canada intend to plant 16.9 million acres to canola this year, up 4.4% from last year’s total of 16.2 million but this was well below trade expectations and some traders believe that actual plantings will end up near 17.5 million acres. Heavy rains slowed the Argentina harvest this week with the crop now about 54% harvested as compared with 67% at this time last year. Cash basis levels in central Illinois firmed 2 cents yesterday as light producer selling persists. South Korea is tendering to buy 100,000 tonnes of new crop non-GMO soybeans.

TODAY’S GUIDANCE: The market seems to be having a tough time rationalizing the $10 price for July soybeans and the reversal seems to be a good reason for longs to considered exiting the market. With high open interest and plenty of soybean sellers from South America, the liquidation correction could be significant. We expect a burdensome supply of soybeans and meal will pressure the market as soon as the world pipeline is filled.

TODAY’S MARKET IDEAS: A 50% correction of the December to February break leaves 1006 as a key pivot point for July soybeans today with next key resistance at 1026 1/4.

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NEAR-TERM MARKET FUNDAMENTALS: The market is seeing a clash of positive outside market forces with negative soybean supply and demand news. The end of strike in Argentina and the potential resumption of exports of meal and oil from the world’s largest exporter is seen as a negative force. In addition, news of record large US plantings of soybeans and higher than expected US March 1st stocks are negative forces for the market to absorb. After some weekend storms, the Midwest looks to get hit with more rain for Tuesday through Thursday and this is likely to be seen as somewhat positive news short-term, but mostly for corn. Delayed corn plantings, in the end, could lead to even higher planted area for soybeans. Early pressure on Thursday came from follow through selling after Wednesday’s collapse along with news that a strike by port workers in Argentina has been settled. Weekly export sales were in line with trade expectations in soybeans and soyoil, but below expectations in meal. Net sales for soybeans came in at 178,500 tonnes for old crop and 210,000 for next year for a total of 388,500. As of March 25, cumulative soybean sales stand at 94.1% of the USDA forecast for 2009/2010 versus a 5 year average of 86.6%. Old crop meal sales came in at 68,100 tonnes with oil sales came in at 14,000 tonnes. The Commitments of Traders reports as of March 30th for Soybeans showed non-commercial traders were net long 35,845 contracts, an increase of 5,135 contracts. The Nonreportable traders were net short a record high 60,739 contracts. The CIT Supplement report showed Commodity Index traders held a net long position of 164,465 contracts. This represents a decrease of 7,524 contracts in the net long position held by these traders. In meal, non-commercial traders were net long 21,900 contracts, an increase of 7,287 contracts. Non-Commercial and Nonreportable combined traders held a net long position of 28,631 contracts, up 9,872 contracts in the net long position held by these traders. In oil, Non-Commercial traders were net long 11,627 contracts, a decrease of 10,037 contracts in just one week. The non-reportable traders were net long 5,419 contracts, a decrease of -7,653 contracts for the week.

TODAY’S GUIDANCE: Trend-following fund traders were massive sellers of oil for the week to shift to a net short position while trend-followers in soybeans were buyers to shift from a net short to a net long position. With Argentina exports expected to pick-up steam, the meal and soybean markets look to come under long liquidation selling pressures. Brazil soybean exports for March were pegged at 3.086 million tonnes which was up from 663,800 tonnes on February and 2.642 million last year. Meal exports also jumped. July soybean selling resistance comes in at 956 1/4 and 961 1/2 with 930 and 909 1/4 as next objectives.

TODAY’S MARKET IDEAS: November soybean selling resistance comes in at 927 1/2 and 932 1/2 with 895 and then 880 1/2 as next downside objectives.