Through Friday, August 12, December soybean oil was up 25% from its low of 54.42 on July 14 and recouped over 50% of the June 8-July 14 drop, a quick rebound, the non-commercials largely missed (DTN ProphetX chart). .
December Soybean oil closed up 4 cents last week, ending at 67.97 on Friday, August 12 and was also the leading percentage gainer among contracts in the grain-related sector. The 24-cent selloff from June 8 through July 14 was largely due to non-commercial selling and concerns about external markets. However, the selling ended abruptly and now prices have risen with the help of strengthened recent support for both palm oil and crude oil. Technically, the weekly stochastic indicator is showing a bullish change in momentum and December Soybean Oil closed above its 50% retracement on Friday. Prices might face resistance at 68 cents, the location of the 100-day moving average, but the downtrend momentum trend has been broken.
December Soybean Meal closed at $12.80 last week and ended Friday, August 12 at $417.90, near the previous high. December Soymeal has been trading in a narrow sideways range since February, closing at a new three-month high in late July. Soybean meal spot prices are trading well above the futures board, indicating strong commercial demand for meal supplies with tight supply. Technically, the December soybean meal appears to be exiting a five-month corrective pattern with a possible breakout to the upside, supported by a bullish shift on the weekly stochastic. Recent changes for both soybean oil and soybean meal are also supportive for soybean prices.