Soybeans, Trading Ideas

Soybeans last breath

Today USDA report is expected to decrease US ending stocks to a even more critical level. Part of it is already on the price, part is not, and recent price action, especially yesterday’s, seems to reinforce that there is still some upside ahead. If this prospect if confirmed, a good entry point may become apparent so it is worth watching today market reaction to the report.

…this adds to technicals, seasonals and fundamental drivers displayed on the chart below (click on it for further info) and commented here almost a month ago.


Another pro aspect are seasonal averages that show us a traditional rally on Decembers. Take a look.
Soybeans seasonals

Important also to note that a rally now has a good chance to be a last and quick breath unless something bad happens to South America 13/14 beans crop.
Play accordingly.

Corn, Markets, Trading Ideas

Meal/Corn ratio near a record high

Peter Brandt has called my attention to this.
It might become a good trade opportunity in corn.

I still think we need more bullish signals to go long, but who am I to argue.
See for yourself…

2013.12.09 - corn meal ratio

“…We are at or near the top.

1. Meal supply is very tight. Meal spreads have been inverted for some time, with the nearby expiring December contract presently trading at a $25 premium to the March contract. As a general rule, it is never wise to be short a market that is inverted.

2. The nearby continuation chart of Corn displays a small H&S bottom (see below) — the individual contract charts do now show this pattern. A continuation chart tends to better reflect the cash market.”


Respectfully copied from Peter Brandt:

and DTN guys have also called and posted a nice chart of it, here.

What say ya ?