Weather Stymies Soybean Bulls
Today’s Spotlight Market
The downward pressure on the Soybean market continues, however prices have been hesitant to break the 1050 mark, offering a ray of hope that the show could be nearing an end. Weather has been the primary driving force for sellers and very little has changed on that front. For that reason, it is difficult to fathom a scenario where Bean fundamentals suddenly turn positive.
Fundamentals
The ideal growing? conditions have resulted in the US Soybean crop being in the best shape it?s been in? two decades. At the present time, 73% of the US crop is in good or excellent condition. Furthermore, weather is expected to remain perfect for the foreseeable future, which will aid the development of the crop. If Bean traders are holding out hope that one of the other grains will offer some outside support? they may be disappointed.
Corn, despite its late start to the growing season, has very similar conditions. As of the writing of this newsletter, 76% of the Corn crop is rated as good or excellent, the best rating since 2004 for this week. The end of July is almost upon us, which would mark the end of Corn pollination for most of the country. Barring the unforeseeable, weather conditions will remain conducive to healthy pollination. Traders may want to look at the weekly export sales figures. Skittish shorts could be tempted to cash out and take profits on strong sales figures. ?
Technical Notes? -? View Today’s Chart
Tuning to the chart, we see the November Soybean contract testing the 1065 level on the downside twice in recent sessions.? Prices have, however, failed to break through this level.? The chart has the makings of a possible W or double bottom if prices manage to trade above 1118.75 level in the near-term.? The RSI indicator remains oversold in the near-term, which could be supportive of prices.
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