Soybean Tech Update
Grain Market Commentary
Wednesday, December 6, 2017
by Jacob Christy, Freedom Program Trader
The bean market took a step back today after strong gains earlier this week. Prices have followed soybean meal higher as money has poured into the long side of the oilseed complex over concerns in Argentina and growing La Nina threats. Traded volume has increased each day this week as volatility has enticed new money into the market. Now as trade dissects the Argentina weather, prices sit at 1000 ready for a big move either way.
Jan18 bean futures gapped higher Sunday night after weekend rains in Argentina disappointed. Prices matched their October highs in each of the past two sessions as the bean meal market scored new contract highs. Trade lost some of its upward momentum today however, trading 14c lower at mid-day, and filling the Sunday night gap. The market did manage a late session recovery to finish back at the 1000 mark. To the upside 1013 is now a double top the market will need to clear to entice more speculative buying while support comes in at the 50-day moving average near 987.
Somewhat surprisingly front month beans are only up 10 cents so far, this week. The markets three session volume has already matched last week’s total and with the wide daily ranges its shows traders are on edge. Feels like there is something more than just Argentina weather at work, but it’s hard to judge in just three sessions. How the market finishes up this week will go a long way in determining the short-term direction of prices. Stay tuned…