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| Disappointing day for soybeans giving up the last 2 days of gains and opening the possibility for another leg lower.
Corn and wheat however both remain relatively strong. KC wheat is +50 cents off its lows from a week ago.
Soybeans took some pressure due to the poor export sales today as they were about half of expected with a cancellation from unknown.
The move in beans isn’t that surprising, I mentioned yesterday that the price action could lead to more selling with the bearish doji from yesterday.
The positive we had was we closed +8 cents off our lows. But we have certainly opened back up the door to test those lows. This could just be a simple correction, but we will probably know by Monday.
Tomorrow and Monday will be key. If we take out todays highs I think we go up and fill that gap from new years. If we continue lower we will go and test that $12 level. Be prepared for volatility and don’t be surprised for head fakes either way.
Fundamentally there isn’t many changes. The weather hasn’t changed. Argentina is still hot and dry, Brazil is still wet in some areas where they are trying to harvest.
One thing that is negative is basis in Brazil. It is getting smacked in the face. But that can happen at harvest time because the buyers have control. Or there is the chance they do indeed have a big crop.
Corn had decent action today, closing well off our lows. We need to take out the highs from before the USDA report. One positive we saw was the spreads firming up despite the market being pressured.
The wheat market is looking solid and we are just a couple more solid closes away from seeing additional technical buy signals and potential short covering.
I’ve seen buy signals in cotton with the recent trend change. I’d be watching for a spot to add put protection at some point but I think we have some room to run.
Cattle continues its run, I have some slight concern with us running into some retracement levels but the chart looks like it has plenty of room to the upside as well.
Listen to todays audio where we go over how you can develop a grain marketing using technicals. Some things you should or shouldn’t do, exit plans & more
Listen Here: https://txt.so/j7J0Xg
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Correction or downtrend resumed in beans? - market audio comments
