Soybeans Tech Update
Grain Market Commentary
Wednesday, October 31, 2018
by Jacob Christy, Freedom Program Trader
A bit of short covering kept bean prices in the green today despite their lower short term trend. Since mid-month Futures have been pressured as a lack of fresh news gives way to the burdensome fundamentals. The highest traded January contract was able to shrug off early session declines just above key chart support. Despite today’ recovery effort, trends remain negative.
The main chart feature for beans has been the major mid-month reversal. By October 15th short covering had rallied the market 80c off the September contract low. But the rally was short lived and as fund buying waned so did futures. Once the contract’s 100-day moving average was unable to hold, the selloff was on, accelerated further by a break below the 50-day. The market will have to prove it can hold a move above the major moving averages before buying confidence can return.
Support ranges at the late summer lows from 836-842. The market also sits in deeply oversold territory which would support a recovery effort. With that said there isn’t much to get excited about in soybeans unless a major fundamental shift occurs. Without those market altering headlines expect technical rallies to be sold.