Soybeans made new lows for the move Tuesday and hit levels not seen for three years.
Rich Nelson with Allendale, Inc. says funds sold hard again pricing in trendline yields based on the idea that forecasted rains for the dry areas of the Eastern Corn Belt will help that crop make up for the deficiencies in the Western Corn Belt.
The implosion in the soybean oil market also weighed on the soybean complex.
However, he thinks November soybeans are getting close to fair market value at around the $10.60 to $10.80 area on the charts.
Beyond supply he says demand is also a problem for soybeans with export pace running behind a year ago for both old crop and new crop and that will likely be reflected in the WASDE Report on Friday.
Corn and wheat staged early rallies on corrective buying but could not hold those gains into the close with the double digit losses in soybeans.
Nelson thinks corn and wheat are closer to finding a low than soybeans because the demand picture is better with exports on both commodities running well ahead of year ago pace.
He expects $4 to be good support for December corn on the charts.
