Pro Farmer Senior Market Analyst Rich Posson says given lackluster price action in the corn market, spread traders may favor soybeans on the long side. "And the rise in Brazilian spot soybean futures in dollars suggests a harvest low is in place," he adds. "Open interest declined a fair amount last week suggesting short covering, which increases odds coming fund position reports may show a bit of buying. The business-cycle model forecasts a Level 1 low is likely in place and prices should work higher into May, but upside potential may be limited to lack of aggressive bullish drivers."
In the July soybean chart below, Posson uses technical indicators such as stochastic, moving averages, trendlines as well as his business-cycle analysis:
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