Pro Farmer Senior Market Analyst Rich Posson says soybeans are due to post a Level 1 business-cycle low this week and a related top is due for the market in August.
"A Level 2 top was placed last week in relation to USDA's monthly report. A weekly close above the current high of this week for the November futures at $9.06 will be a bullish development," says Posson. "A long five-week stochastic will be bullish evidence. July Brazilian futures have exhibited signs for a rally into July, which suggests firm global demand and harvest pressure has peaked... The July-to-August soybean futures spread has been bullish, suggesting strong spot demand in futures."
On the November soybean chart below, Posson uses technical indicators such as stochastic, moving averages, trendlines as well as his business-cycle analysis:
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