After a lackadaisical start the session last night, the market picked up some life and bounced to the plus side. That said, little in the way of news as rains were not great yet in the north in Brazil, but more is still in the forecast. Palm oil is working higher helping support US bean oil. However, crude is lower, the US$ steady and other fundamental news is scarce to push this market in either direction. In the end, Chinese demand will be the alpha and omega. Chinese soyoil imports are off 27% Y-O-Y. If it wanes, this market is set for ugly values. Being pushed out by SA stocks would be a double whammy. The NC S/C ratio is back below 2.3 at 2.28 and is not encouraging additional acreage nor should it be. The SF/SH spread tried to hit par, but traded down to -1/4 then back to -3/4 as we approach first notice day next Wed. Dec. 30th. Beans had another good vol. session while products watched. Meal and beans both registered losses in OI while oil added a nice amount in low vol. Look for little to happen today as the markets are in holiday mode and no ground breaking news to move it.
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