 Hello, welcome to this week's CMC Markets Commodity Snapshot with myself, Jasper Lawler. We're going to be looking at soybean meal, and the market's crashed five out of the last six weeks, so we want to determine if that's going to continue, and the latest USDA crop report gives us an indication as to whether that's going to happen or not. What you have to bear in mind when we talk about soybeans is really the same as every other agricultural commodity is there's a seasonal effect, and you have to look at the main exporters and producers and how that affects the general market dynamics throughout the year. And so the main exporters you're looking at with soybean meal are Brazil, Argentina number one Brazil and the United States. And so what we've been dealing with so far this year is leading up to the end of the exports out of Brazil and Argentina, which typically takes place starting around March and tipping out around July. So we've been forecasting what's been happening with that as it turned out. There was a pretty bumper crop in those two countries, and now as we move forward we're looking at the United States, and this latest USDA stock and acreage report has basically implied that 72% of the crop in the United States is good or better, and so that's looking like a pretty bumper crop from the US as well, and hence we've seen overall between the three major markets a pretty big glut of supply come into the market and the market's reacting accordingly with prices crashing. Now in a moment we're going to flip over to the chart just to have a look at some important levels here, but at this point we've got to ascertain is there anything that can prevent this, this fall in prices. We've looked at supply side of the equation, the demand side increasingly like a lot of things in the world these days are coming from China, and so if the increase in demand for soybean products from China can start outweighing some of this increased production from these top three producers then we could start seeing a rebalancing of the prices. That's even though the increase in China is happening it's not happening at the same pace as the increase in supply. Possibly an effect this season is when you're looking at demand from Europe there's been a pretty bumper rapeseed crop, and so that's that's an alternative to soybean meal and so that may dampen some of the demand coming from Europe that in itself could could push prices potentially higher. So let's have a look at the chart now. Now this is a weekly candle chart for soybean meal the cash market as priced by CMC markets. Now what you can see is this crashed down in price from about 500 down to 400 losing around 20% in just the last few weeks. Now as you can see there's a rising trend line which connected the highs from 2011 and then into the recent recent lows and that is backed up by the 200 week simple moving average as well as the round number 400. So that is a strong potential supply there and so we'll have to see if some of these effects coming from Europe and China in terms of demand is going to actually impact the market at that level. Should this level fail though we could like we could likely see a move down to the December 2011 low down at 275 and I guess one further thing to mention is just looking at the RSI at the bottom there you can see we are somewhat oversold at the moment but we've pushed through previous support levels so as always we can remain oversold for prolonged periods so it will be a matter of whether we can pull back out of there area or not. Thank you for watching this week's commodity snapshot let's have a look at that 400 level and good luck trading.