If we get a 13.84 print in SX, I’d be a seller. We traded down to 13.34 today and still have a gap below at 31 to fill. Eventually, I believe that gap will be tested. Given the volatile trade in beans and the fact that we are having 50 cent swings ($2500) per contract gains and losses, trading beans is not for the faint hearted. It is imperative that you use protective stops.today’s high at 13.68 was 30 cents from that low. I think there might be one more 25 cent push to squeeze out those who sold it in the hole this morning. Use a limit order sale at 13.80 to 13.84 with a stop commensurate with your pain level.
Its a counter trend trade, so you better be ready to run if it breaks bad.
Its been interesting to watch December gold fail repeatedly at the 1400/ oz level. The Syrian/Mid-east spread trade had been backfiring on anyone who was short the stocks and long gold this week.
CZ corn continues to melt down, unable to stay above 5.00 for more than a 2 days in a row. It certainly looks like it wants to re-test the 3 year low at 4.45 3/4 we posted just 3 weeks ago. Funds remain short wheat, short corn and long beans. If the beans fail for a 4th time at 14.00; I can’t imagine who is going to take the other side of the sales if the funds light the fuse on the sell program.
