Looking Ahead in Soybeans

Quick observation on these beans.

November beans were on this continuation chart the day before they came off, and January beans have come down and banged this line.

Now, I want to squeeze this up on your phone so you can see it.

Notice that since February, four attempts have been made at that 1240 mark.

And, of course, the old rule is that once you break through major resistance like that, after four attempts that failed to hold, when you come back down into it, you tend to get a bounce of pretty significant magnitude.

Now, by Monday, the soybean harvest should be 80% complete. Farmers are selling beans right off the combine.

But look at how the bean market has absorbed this selling pressure, with a break of only 80 cents from that high!

And recall, we had discussed how there was trouble in mid-September.

Every 60 days, the bean market tends to turn. Well, that next 60-day window is mid-November.

Is that going to mark a low? Or are we going to bounce into mid-December really quickly?

Not necessarily to new highs, but we shall see!

I'll say this: If they can't get January beans under 1240, even with a correction early next week, our work suggests something interesting could be developing.

Somehow, some way, something is going to go funky wrong here in December with these beans, and we're going to see a rally.

And remember, a lot of the grain has already been sold.

Go ahead and hit the free trial link in our bio to see what we're developing going forward.

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*This is not trading advice; past results are not indicative of future results*