This morning has seen a bit of firming in the November Bean Contract. The 880 level, although breached with a low of 878, held and we bounced back to the 890-893 level. I personally think we will spend a little time here in the 880’s digesting the trade. It is a short week though, with Columbus day here in US, so that should compress and moves. I think the targets below are the options strike prices, 875, 850 and then 800.
Similarly for Corn and Wheat, these higher bounces are most likely selling opportunities to take advantage of. The key is to not be too early or too aggressive on the sell position, as we may see ten or 15 cent bounces higher before the overall trend continues lower.
Also, the CFTC’s limitations on Index fund positions will continue to be a bearish factor weighing on these commodities…. If the position limits are smaller and are enforced, then that should lessen the fund’s ability to push market direction to extremes.
Currently , Crude Oil is Down, Stock Indexes are higher, with the S&P up 9 handles and the Dow up 40 to 50… Perhaps last Friday’s morning lows around 11 in the s&p and 9350 in the Dow may serve to be intermediate term support. They could provide areas to consider placing limit buy orders, as long as you combine them with close sell stops to prevent against a loss in a flush out…
All in all, I think we well have our business done by Thursday for the week…And then people will be heading away for long weekends. Look for most of the business occurring between now and Wed night…
Good Trading