SX , November beans are at a critical point as we head into the Ides of October. 1286 is 1/2 way back of this rally which began in August down at that panic low of 11.63. We then rallied in earnest, and the managed funds built their position into its current 100 to 140K contract position. At 5,000 bushels per contract, that’s a boatload of grain in anyone’s world. Roughly 500 to 700 million bushels of Soybeans. We tried 3 times to breach 14.00 and failed. We have returned to the 1/2 way point and are at a critical point in time.
We should have gotten a USDA report today , but thanks to the dog and pony show in D.C. the USDA’s closed and we have to wait for the data.
12.57 is the next key support. I have a small long position going into this weekend, as a fade against popular opinion that harvest pressure will open the flood gates lower. With protective sell stops, its a good risk reward proposition.
