Technical buying following Wednesday’s close above the 50 day moving average produced another strong rally in the soymeal. The meal market focus remains on Argentine crops/ potential meal exports in the year ahead. And funds continue to add to their long meal position. Commodity funds were estimated buyers of 4,000 soybean and 4,500 soymeal contracts, while selling 2,500 contracts in the soyoil.
After cutting their area estimate last week, the Buenos Aires Grain Exchange estimated that there was still close to 600,000 hectares of soybeans unplanted this week due to ongoing dryness in the NE and NW regions of the country. Planting across the rest of the country is complete, and national progress was at 97%.
The Exchange noted the possibility that some of the remaining hectares could potentially be switched to other crops if not planted soon.
Argentine weather forecasts and US weekly export sales are key events for Friday’s marketplace. The Commitment of Traders data to be released after the close. Argentine forecasts show minimal rainfall for next week which looks to offer support. The next upside price target is $9.79 March, the 50 day moving average.
