In observance of Good Friday, there will not be any opening or closing Market Commentary on March 29, 2024. 


Soybeans Tech Update

Grain Market Commentary

Wednesday, February 19, 2020

by Jacob Christy, Senior Merchant, The Andersons

Beans recovered from early losses today to keep a month-long bounce intact. Prices scored a key reversal back on February third after filling a long-standing open chart gap which laid the foundation for a nice corrective move. The market has since scored higher closes in 10 of 12 sessions correcting its deeply oversold condition. Trade will now look for prices to prove whether this month’s gains are merely corrective or the start of a longer-term trend.

May bean futures have spent the month on the offensive. Prices are now 23c off their lows having established a short-term upward trend. The market is still a ways from its major moving averages, but consecutive closes over 900 is a good sign after what looked like a falling knife in January. Momentum indicators like the stochastics and MAC-d are also showing signs of reversal. Obviously, confirmation is needed, but getting above the recent highs at 908 and clearing the 20-day moving average would both go a long way in restoring some lost confidence.  

Bargain buying and profit taking undoubtably contributed to the bounce following January’s decisive collapse. But Daily reversal patterns, like we saw today, indicate there might be more to this month’s gains than just a dead cat bounce. Time will tell, but short term the market will have to get away from its volume node near 900 before either side gets too excited. Stay tuned.

The Andersons Tech Update Soybeans

The Andersons Tech Update Soybeans