Technically Speaking

December soybean meal closed at $381.20 Friday, Sept. 29, 2023, down $4.60 on the week and down $22.80 on the month. Not only was the close the lowest in over a month and below the 100-day average at $393.00, it was also the first close below the descending triangle pattern meal had been in since June. The downward slide began a month earlier on Aug. 29 after prices challenged, but failed to surpass, the June high of $432.60 and left behind a second lower high. Technically speaking, the trend in December soybean meal is now down and prices are in danger of falling below the 2023 low of $361.80.

From June through August, soybean oil has been the leading percentage gainer in the grain-related sector, but that bullish surge cooled in September. December soybean oil closed at 55.83 cents Friday, Sept. 29, down 3.79 cents on the week and down 6.65 cents on the month. Friday's close was below the 100-day average at 57.30 cents and, also, the lowest in three months, a clearly bearish change in trend. A steep decline in RIN prices, also in September, suggests production of renewable fuels in 2023 is already approaching the levels mandated by the Renewable Fuels Standard for the year, resulting in the recent easing of demand for soybean oil. Technically speaking, the trend has turned down for soybean oil with possible support near the year's low of 44.47 cents.

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The comments above are for educational purposes only and are not meant as specific trade recommendations. The buying and selling of commodities, futures or options involve substantial risk and are not suitable for everyone.

Todd Hultman can be reached at Todd.Hultman@dtn.com

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