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| Turnaround Tuesday following corn posting a new contract low today and soybeans breaking below $12 for the first time since June.
However all of the grains, corn, soybeans, and wheat posted outside up days today. This means we took out yesterdays lows before closing above yesterdays highs. Which is typically considered a great sign and potential indication of a reversal.
Today soybeans rallied +33 cents off their lows, taking back roughly half of the recent sell off and are back above $12. Corn posted new contract lows before having it's best day since November after bouncing a dime off the lows and making what is called a "key reversal". While wheat rallied +20 cents off it's lows.
This type of action was something we have been mentioning we could see since last week. That we could see soybeans break below $12 and make a new low fractionally before reversing higher. Because that is what the algos and big money tend to do. Give us head fakes, hit the stops, and push prices just past the point of support and resistance before flipping the tables.
So why the rally?
Some are saying it was a simple technical driven rally. The funds are holding near record shorts and it is the end of the month. So perhaps a large part was profit taking.
However, the biggest headline the bulls are seeing right now is Argentina. The market is finally starting to pay attention.
The two week forecasts are calling for scorching temps and the rains seem to disappear. If this continues, it could cause some issues to what most would consider a fantastic crop thus far.
Below are the forecasts:
So was this rally just a case of profit taking or was there more to it?..
Listen and read todays update where we go over if todays rally has any merit and how to manage risk on days like today
Listen/Read Here: https://txt.so/uUOsJI
Some charts below:
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Attachments
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 IMG_0240 (full).JPG (132KB - 90 downloads)
IMG_0241 (full).JPG (204KB - 92 downloads)
IMG_0264 (full).PNG (92KB - 137 downloads)
IMG_0265 (full).PNG (93KB - 132 downloads)
Screen Shot 2024-01-30 at 1.34.43 PM (full).jpg (61KB - 99 downloads)
Screen Shot 2024-01-30 at 1.35.11 PM (full).jpg (74KB - 92 downloads)
Screen Shot 2024-01-30 at 1.35.50 PM (full).jpg (60KB - 90 downloads)
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Market comments - outside up days & key reversals
