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WEEKLY SOYBEAN REVIEW: Bean Bulls Are Still Waiting

Beans having trouble escaping hold of outside markets.
Bryce Knorr 
Published: Jan 26, 2009

It's the start of a New Year in China, but the soybean market is still waiting for the ball to drop. For a while on Friday it looked like beans were finally going to confirm the rally and move to new highs for the year. Instead, the market bounced off the top of its range and reversed to close lower, putting a bit of a damper on the festivities.

Indeed, for all the talk about weather in South America, beans continue to have trouble escaping the hold of outside markets, especially crude oil. Now, with crude looking like it's trying to confirm lows that may not be all bad. But it is an indication that all markets are still having trouble trading fundamentals.

Those fundamentals are looking more bullish, of course, following moves by Argentine officials to cut both acreage and production estimates, moves that could trim 250 million bushels or more off the size of the crop there. Showers started popping up earlier than expected over the weekend, providing some relief to temperatures in the upper 90s, but the back of the drought does not appear to be broken.

To read Bryce Knorr's complete weekly soybean review, click HERE.

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