That big sucking sound you heard last week was the air being deflated from the soybean market. While old crop supplies remain very tight, USDA essentially told the market not to worry. With outside influence from crude oil adding bearish pressure, old crop prices dropped like a rock.
Still, while the short-term trend is bearish, longer-term indicators remain positive. So it's not time to toss in the towel yet on new crop production, especially with ACRE and crop insurance protection starting to kick in.
That doesn't mean beans may not produce further heartburn. A move to take out last week's $8.82 low could quickly generate a test of the island bottom at $8.50. But without a move below the spring lows at $7.84, it's tough to say the market doesn't have hope, if not potential.
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