Soybeans 12-11 Trade #2

Soybeans hit new highs repeatedly today due to anticipation of an even weaker dollar. The chart shows two trades for soybeans. This time I posted the 3-minute chart so I could include both trades on a single chart.

But the Fed delivered a surprise and after the grains market closed. The Fed only reduced interest rates .25% instead of the .50% that was priced into the market, and commodity prices fell across the board. However, grain trading stops at 2:15 pm EST, precisely the same hour as the release of the Fed's decision, so grain prices couldn't react like other commodity prices. No doubt grain prices will probably fall when the market reopens this evening. This is one reason why I am reluctant to hold positions open while the market is closed.

But don't expect the correction to last long. Between the bullish trend in soybean prices, and the weak U.S. Dollar, prices should go higher again following a correction tonight. It may take a few days, but I expect the bullish trend to continue before the weekend.