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| Beans rally, closing above $12 to their highest close in 2 months. Now +80 cents off the lows. The wheat market was under pressure but bounced well off its lows.
The soybean market looks really strong. I think we still have room to run especially if we take out last weeks $12.17 highs. We are seeing a lot of moving average crossovers which are considered buy signals by most.
I remember last year when we were trading just above $11. Not many aside from us thought we would see $14 beans again last year. But then all of the sudden we were right back at $14.
Beans don’t like trading in the $11’s. So I look for us to stay above $12 and at some point this year hopefully go up and test that $14 area again.
That seems like a stretch today as $2 is a big move. But there are reasons why it could possibly happen.
We have the massive crush. We sold some beans to China today. Some think the crop in Brazil is a lot smaller than the USDA currently has it pegged at.
With the way the funds are short, it doesn’t take much to move a market. All it takes is a catalyst. More short covering leads to more short covering…
Check out today’s audio where we go over the markets, why $14 beans isn’t all that impossible, and what to expect heading into this major USDA report in 8 days
Listen Here: https://txt.so/J8onXE | |
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Market audio comments - short covering leads to more short covering
