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Beans Bounce Back After Thursday's Bullish Reversal

Hope is revived that harvest lows are in.
Bryce Knorr 
Published: Oct 19, 2008

Traders love soybeans, and the market showed why last week. After a punishing collapse, November futures posted a 10% rally off Thursday's lows. Given the magnitude of the sell off, it doesn't look like much on the chart, but it revived hopes harvest lows are in.

Whether they are likely depends on outside markets for now. If the Dow and crude oil can hold last week's lows, beans could be ready to attempt a post-harvest rally. If not, there are more downside price targets on the nearby chart below $8.

Demand remains the good news underlying prices. Though shipments remain sluggish, export sales for the week came in at 37.8 million bushels, keeping the pace well above USDA's forecast for the marketing year. The government has a tendency to underestimate bean demand, and my model suggests carryout could be 42 million bushels less than projected if the trend holds. To read Bryce Knorr's complete weekly soybean review, click HERE.

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Tagged: Harvest, usda, soybeans, soybean, farmfutures

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