AUDIO COMMENTARY

Treating cattle rally as a reward
Corn and wheat back near the highs
Market thinks China won’t buy beans
New crop getting RVO priced in
Risk for sell the fact in biofuel meeting
If crude stays high grains tend to follow
If corn loses acres we have upside
How does fertilizer change things?
Don’t want down days to stress you out
Comfortable selling calls to get paid to store grain and have offers out there
Will China buy any old crop beans?
If China buys old crop will dicate where the soybean spread goes from here
Could lack of farmer selling keep the bean market at an inverse?
Using options in marketing
Corn chart looks far different than bean chart
Soybean chart & target below audio*

Listen to today’s audio below

Want to talk?
Office: (806)484-1214

MAY SOYBEAN CHART

May Soybeans 🌱

Finding a bottom here would make sense.

Not only did we give back exactly 50% of the rally ($11.45).

We are sitting at peak volume. Known as a volume shelf.

Areas of high volume act as magnets and key support/resistance levels.

If you notice, everytime we’ve traded below this level we sliced right through. Both to the downside as well as the upside.

Which created a gap of air beneath us, as we created no support.

So this is a key spot we want to see us hold.

I think we bounce and hold this level. BUT if we fail $11.45 we will probably drop down to the next retracement level. Which is the 61.8% level at $11.23

That level would be the line in the sand. If we lost that level, it would be a pretty bad look and be a sign we are in for a deeper pullback.

The most common retracements for a standard correction are 50% to 61.8%.

(Scroll for upside target)

Now if.. this is truly the bottom.

We want to be looking to reward a move towards $11.90 to $12.00

That claws back 50% to 61.8% of the entire sell off.

The most common place for a relief bounce to go to.

It’s where the market usually decides if this is just a relief bounce, or if the rally will keep going. So makes sense to reward a move at that level if it comes.

That same level is also the next area of high volume.