Soybeans Tech Update

Technical correction for beans today on improved crop ratings and a lack of new Chinese business. Despite today’s double digits declines the overall damage done to the chart was pretty minimal. Beans remain in trend with the market sill 10c above a clear lower bound.

Beans continue to trade within the major moving averages while maintaining their upward trend. The major upward trendline now coincides nicely with both the 50-day moving average and old congestion zone with the 100-day not too far below them. This marks a pretty clear bottom to the upward trend from 868-877. The market sits 10-12c above there for now, but if tested this will be a key support area to watch. To the upside, maintaining above 900 and ultimately the 200-day have been difficult.

With the market overbought and month end Friday, today’s correction isn’t overly surprising on Monday’s bearish news. Cleaning up some of the weaker positions could actually end up being healthy for the trend down the road. That said we’ll want to hold the longer term supports to keep trade confident that today was a mere correction versus an overall shift in trend. Stay tuned.