The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
Grain TV is a daily recap after the market close, providing opinions on fundamental analysis of market direction, influences and expectations. This daily program is produced by Grain Hedge, a discount brokerage firm that provides farmers and elevators with agricultural intelligence including live market quotes, cash bid data, the Grain Hedge Optimizer™ and mobile trading platforms, all for $7 commission per side. Grain Hedge provides tools to allow farmers the ability to trade when the markets move without having to wait for a broker and the information to execute a marketing strategy with confidence.
Today, we saw May soybeans hit a fresh 5-month high after breaking through resistance in the 1290 area. The chart below taken from our Firetip trading platform shows this new high as we finished the day above 1300. Soybeans have had quite a run-up lately which calls to our attention the Relative Strength Index (RSI). This indicator is found on the bottom of this chart and is one of the many indicators producers can follow using the Firetip software. When RSI reaches the 70 level the market is said to be overbought. As of this writing, May Soybeans are currently at a 64.1 on the RSI chart. A correction could be in the near future as this contract becomes over bought. The 1300 area will likely prove to be a battleground and a psychological barrier for traders to overcome. If you would like to follow this contract in your home or office, give one of our brokers a call at 877-472-4607 or sign up for a demo below.
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