Soybeans Tech Update
Grain Market Commentary
Wednesday, June 6, 2018
by Jacob Christy, Freedom Program Trader
An outside day lower continues what has been a poor week for the soybean market. July futures closed at their lowest level since early Feb., matching the lows from May and April. A combination of improving weather, ongoing disputes between the U.S. and its trade partners, and extremely strong initial crop conditions have funds liquidating.
The soybean chart doesn’t look good. This week alone prices gapped lower Sunday night, filled the upward gap from last month, and scored an outside day lower today while breaching a long-term trend line and the 1000 mark. Prices now sit precariously above the old lows, having dropped 55c in six sessions, with little support offered below here. It will be important for the remaining longs to see the old lows from 988-994 hold.
Bean prices are at a teetering point. If prices can hold the old lows it might renew buying confidence. While a further break could accelerate the liquidation. A telling couple of sessions lie ahead. Stay tuned.