Technical Tuesdays -- Beans Heading Lower?
Nov 01, 2011
Since mid-October, soybeans have been slowly drifting lower and are clearly in a
downtrend after hitting highs on August 31st. The potential is to continue on this path for
the foreseeable future, especially with South America’s crop looking to be a bin buster.
The supply side of the market is not an issue going forward, but the demand aspect
remains a major concern as exports have been lagging well behind the projected pace
of the USDA.
The chart below comes from our Firetip trading platform and depicts the
January soybean contract. Overhead resistance comes into play around the 1240 area
and will drift lower as we move forward. Support will be first met around the 1185 area
with further support in the 1165 area. Unless a surprise reduction in the supply comes
from the USDA’s November 9th reports, we anticipate beans to continue lower. To
discuss these or any other technical analysis, please call one of our brokers. If you would like to start charting today in your home, click the red button below to take a demo of Firetip!
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