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Central Missouri | Start with beans; mon/tues/wed last week tried to turn macd higher but thurs trade negated it which is fairly bearish imo. http://www.agrichartsmobile.com/markets/chart.php?ab=quotescharts&p...(direct)|utmccn=(direct)|utmcmd=(none)&PHPSESSID=6q4rlq6bv46hnbak98clqgqiq6&studies=VOLI;MACD;
We may be headed lower into the late Jan/ Feb seasonal cycle low. http://www.spectrumcommodities.com/education/commodity/charts/s.htm...
Just a few thoughts on beans. Chinese demand normally switches to SA soon. I take the weather is good down there as I havn't heard different. Seasonal lows in Feb could be accomponied by better basis. The 19 year Benner drought cycle is past due. Last major drought was 1988 plus 19 gives 2007. Out of the money calls are a consideration come feb if market is selling off.
It will be interesting to get wheat planted acres and stocks in Jan. srw acres are way down and alot that got planted don't look too good.
Take a look at a more condensed version of the Jan chart http://www.agrichartsmobile.com/markets/chart.php?ab=quotescharts&p...(direct)|utmccn=(direct)|utmcmd=(none)&PHPSESSID=6q4rlq6bv46hnbak98clqgqiq6&studies=VOLI;&density=X
If the chart isn't condensed go below the chart and in the density area click on max.
Draw an uptrend off of the mar and oct lows; it crosses around 9.40-9.50 area in jan/feb time frame. An upturn of macd at the same time as a touch of the uptrend line could signal the turn if prices continue to move lower into the seasonal cycle low.
Now draw a downtrend off the june and dec highs. With the uptrend and downtrends drawn you can see a wedge or coil forming. One or the other will eventually give way.
Short term signals in beans are lower for now.
Edited by ehoff 12/20/2009 20:28
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Beans chart
