CBOT Soybean pre open , Nov 11,2009

Soybean

• Soybean (Jan10) was up 6.25 cent for overnight market, USD Index made new low, EU equity open higher, crude oil up but palm oil down 0.4%.
  
• USDA report was bearish for soybean, the average yield was raised to 43.3 bu/acre and production was raised to 3.319 billion bushels from Oct estimated of 3.250 billion which average estimated range at 3.15-3.79.

• USDA forecast world ending stock increase to 250.23 million tonnes from high production in US, Brazil and Argentina. USDA increase Argentina production to 53 million tonnes from higher planting area more than last oil world estimated at 50 million tonnes which they concern on drought.
• Dry areas in Argentina would have a little rain in next week. Give some hope for soybean plantation. Rain expected to be very light and isolated of much in Cordoba, southern Santiago del Estero, central Santa Fe, Southwestern Buenos Aires and La Pampa.
• Technical for Soybean (Jan10), Soybean prices had strength support at 953 cent, the reverse pattern occur in soybean daily chart, Slow stochastic indicated buying signal but moving average indicator and RSI was neutral. Today price could up from outside market supportive minor trend is bullish but major trend still bearish pressure from fundamental. I think in short term price may not lower than 950 but in other way, soybean price will not break next major resistance at 1,023 cent . Today next resistance is 983 cent and next psychological resistance is 1,000 cent.