Too Much Of A Good Thing For Soybeans?
Today’s Spotlight Market
The weekly crop progress report, released each Monday at 3 pm central time, showed 65% of the Soybean crop was rated good to excellent. This was down 2% from the previous week. On average, 90% of the Soybean crop has been planted vs. 87% last week and 95% last year.
Fundamentals
Summer rains are normally a welcome sight to grain and soybean producers as the heat of June, July and August can put great stress on the developing crop. However, the 2015 growing season is starting with an overabundance of moisture, which is sparking concerns that not all of the expected Soybean acreage will get planted this season. While the leading Soybean producing states of Iowa and Illinois are seeing over 90% of the Soybean crop already planted, the totals drop sharply as one moved south, with only 42% of the crop planted and 72% of the crop in Kentucky and Tennessee. While these are not among the top 5 Soybean producing states, the potential reduction in planted acreage could still be important in turning 2015 from a record to near record harvest, to a season with only average Soybean production. The 6 to 10 day weather outlook published by the Climate Prediction Center is calling for below normal temperatures and above normal precipitation for most of the eastern and southern portions of the Soybean growing area in the U.S., which if accurate, will do little to help producers struggling to finish planting Soybeans by the end of June.? ?
Technical Notes? -? View Today’s Chart
Looking at the daily chart for November Soybeans, we notice what may turn out to be a bear trap having formed once the market fell below 900.00 back in May and having been sprung on the latest rally above 925.00. Prices are now above both the 20 and 200-day moving averages and momentum as measured by the 14-day RSI is strong, with a current reading of 67.12. 967.50 looks to be the next chart resistance level for the November futures, with support found at 922.25.?
——————————————————————————————————-
This article is provided for informational purposes only. No statement in this article should be construed as a recommendation to buy or sell a security or to provide investment advice. The content provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy and completeness. optionsXpress makes every effort to provide timely information to its recipients but cannot guarantee specific delivery times due to factors beyond our control. Derivatives involve substantial risk and are not appropriate for all investors. Please read the?“Disclosure Statement for Futures and Options”?prior to investing in futures or options. For investments using a straddle or strangle options strategy the potential loss is unlimited. Multi-leg option strategies are subject to multiple commissions. Profits may be eroded by the commission expended to open and close the positions and?other risks?apply.