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Middle Tennessee | Just as it looked as though the “emerging economies” might never stop submerging, the Brazilian real is 10% of it’s low from 48 hours ago with announcements from the monetary policy makers there, while the Chinese premiere is making US export deals coast-to-coast, including 13 million tons of soybeans to go with the jet airplanes. With these developments, the soybean continuous chart put in a hook reversal off contract lows, and damn near a key reversal coming just a few pennies from taking out Wednesday’s high. (Note of course because of the inverted futures curve, contract lows still lie beneath us).
Janet Yellen drank too much coffee and got dehydrated during her speech yesterday, but she was wet enough to give DX bulls their cue, and the dollar is strong this morning, with the Euro weak. This development and more bearish global inventory forecasts from the IGC might arrest wheat as complex leader, but the real is trading along with the dollar currently, and soybeans can take over. We’ve got open interest up 11 straight sessions now, nearly 50k contracts over that period. I believe tonight’s CFTC report with show girthy new shorts from Managed Money, shorts which are close to sinking below water level. | |
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LKCW Special AM Bulletin
