Friday, March 7, 2008

Sorry, Soybean Bulls, You're Stuck!

The soybean market today closed out at more than 60,000 contracts waiting to be sold. This is an almost certain assurance of another instantaneous lock limit down when trading resumes Sunday evening. The CME is attributing this to the following:

  1. Brazil's soybean crop is expected to be higher than earlier estimated.
  2. Argentina's soybean crop is expected to be higher than earlier estimated.
  3. China has announced that it will release soybean oil in storage for sale into the global marketplace.
If we see a similar scenario played out in the soybean market that we saw a few weeks ago with wheat, possibly lock limits will be expanded, and margins would therefore also have to be increased. If this occurs, panic will spread as traders and large funds seek to liquidate their positions. Brokers will be forced to liquidate trader positions also to raise funds due to margin calls. This, in turn, will accelerate price action downward. Once this is achieved and all the shorts are stabilized, prices will rocket back skyward as new positions are reestablished in soybeans at bargain basement prices. It will be an interesting week for soybean traders next week. I'm glad I liquidate all my positions each day.

Flawless Trading Day for Wheat

Here are the trades for today. Although volume has been light, the trading conditions have been some of the best I've ever seen. What a great day to be a trader!

Grains Mixed

Soybean and corn prices remain lock limit down, and probably will continue to remain in this condition the rest of the day. With more than 62,000 contracts pending for soybeans, and more than 13,000 contracts pending for corn, there is almost no possibility of these two grains trading again until Sunday evening. If this situation persists, margins will be increased and margin calls will cause even greater volatility in future days, as brokers are forced to liquidate trader positions to cover increased margins.
Wheat, however, continues to provide excellent trading opportunities, even though volume is somewhat thin today. Note the difference between the smooth, clean trading on the tick chart (right) versus the erratic conditions shown on the 3 minute chart (on the left). Both charts represent the same period of time. It is obvious why trading the tick chart is so much easier! During the trading session for wheat today, these trades have take place rather slowly. This makes for good trading conditions, because I don't feel as rushed to make decisions and execute my trades under pressure. What a great day to trade!

Meanwhile, Crude Oil Gets Even More Expensive!

Meanwhile, the price of crude oil continues to move higher minute by minute. The tensions in South America between Colombia, Ecuador, and Venezuela have caused greater price pressure on crude oil.

Marxism Taking Control Across Latin America

Here is an excellent article that explains more of what I will discuss following:

Colombia Stands As a Beacon of Hope

Ecuador and Venezuela, both with socialist/marxist presidents who have dissolved their legislatures and befriended Cuba's Castro, are threatening Colombia with military action. They have consistently used their oil wealth to both fund marxist guerillas and provide them with safe haven within their borders. Ecuador and Venezuela are also both members of OPEC, while Colombia is not. Colombia also is an exporter of oil, but has far smaller reserves than its two socialist neighbors.

For decades marxist terrorists have carried out relentless terrorist attacks against Colombia's oil pipelines and murdered thousands of innocent Colombian civilians; they then flee back into the neighboring Ecuadorian/Venezuelan jungles to hide. Once, a group of terrorists shot their way into the Colombian Supreme Court building with machine guns, held the judges and employees hostage for days, and then massacred them all, killing the entire Colombian Supreme Court!

In desperation, Colombia's military carried out a successful attack against these marxist guerillas a few days ago inside Ecuadoran territory, killing one of the marxist terrorist leaders that Hugo Chavez has been funding and supporting. They recovered four laptop computers in the raid that prove the connection to both Chavez and Ecuador's marxist government, including presidential campaign contributions to Rafael Correa, Ecuador's president (who, following his election, dissolved the country's legislative body). Consequently, Venezuela's Hugo Chavez is now threatening Columbia militarily and economically. These tensions are pushing oil prices even higher (at the time of this writing, about $106.50/barrel). There appears to be no end in sight for the price of crude oil.

I have lived in both Ecuador and Colombia, and I have fond affection for both their peoples. Colombia always had a better economy, primarily because of its superior economic freedom. They had more products and higher quality goods in their stores. This was so prevalent that many Ecuadorans made livelihoods just smuggling goods of all kinds from Colombia into Ecuador for resale. These goods were high quality, and it's beyond me why they would be banned in Ecuador. What's so dangerous about a gas camp grill, chocolate Mars candy bars (they sure were good, too) or ceramic plates? Columbia's economy has been so good that they have been net exporters of food to Venezuela and other neighboring countries, while Chavez' Venzuela has now sludged from being a net exporter to a net importer of food under his tyranny. Whatever he can't get through intimidation and tyranny, he simply steals or nationalizes.

I feel particularly for the people of Colombia in this case because these terrorist attacks have taken a heavy and relentless toll on the people of Colombia by Chavez' marxist/terrorist thugs for decades. I was there 25 years ago, and the marxist drug lords have been terrorizing the Colombian people for at least that long.

When I was in Ecuador and Colombia, I remember meeting an American who rode his bicycle along the Panamerican highway through Colombia. He was just a penniless bicyclist traveling through the continent. He survived attempts by these guerillas to capture, kidnap, and shoot him as he rode along the highway. That was in 1978. The Colombian people have endured these conditions for that long, with relentless military attacks, funded by Hugo Chavez' vast oil wealth and the cocaine drug lords, who work together to try to destroy the government of Colombia and force its people into a tyrannical dictatorship. So far, they have courageously resisted.

Hundreds of Colombia's politicians who have had the courage to stand up to these brutal murderers have been killed, and one presidential candidate was kidnapped and is still held hostage nearly 5 years later. Most are too afraid to stand up to these goons for fear that they or their families will be murdered. We all have heard horror stories of the brutality of the Colombian drug cartel! The Colombian people live with it every day!

President Alvaro Uribe of Colombia is one of the few people who have stood up to these brutal marxist drug lords and lived. Many have been killed. He is educated at Columbia and Harvard Universities in the United States and is one of the few free-market leaders in Latin America. While South America has turned almost entirely socialist, he and his people have been the lone voice in the South American wilderness for freedom and free markets. He faced enormous opposition from Marxists both inside and outside his country, and remains firm in his principles of political and economic freedom, even while his neighboring Andean countries -- and all of South America -- have descended like dominoes into Marxism in the past few years.

President Uribe deserves the support and help of the United States at this moment of crisis, not in military troops (Colombia already has the best military in the region), but in moral and perhaps economic support. His country is surrounded by well-funded marxist militarists on the North, East, and South who want to depose his free government and impose marxism on his people. He faces daunting odds and opposition.

Meanwhile, the Democrat Congress in the United States continues to block a free trade agreement with Colombia, one of America's few true-blue friends in Latin America. I urge Americans to contact their Congressmen and urge them to ratify the trade agreement. It will help to solidify America's only ally in the region and make Colombia economically strong so that it can continue the battle for its own freedom on the South American continent.

Unfortunately, there appears to be no quick solution to this problem. These tensions have been simmering for 50 years, and crude oil prices are probably going to go much higher still.

Wheat Going Flat!

One reason why I always use my triptych is that is give me perspective into what longer-term traders are doing and what longer-term charts look like. Even though I have had multiple profitable trades, on the 3-minute chart, wheat has been relatively flat for the past hour. Hard to believe, since I've been very busy. Here is the 3 minute chart. Except for the first 30 minutes, wheat prices have been fairly stagnant on the 3-minute chart. This is why I consider the tick charts to be so indispensable.

Lock Down for Corn Too!

Corn has now locked limit down for the day, also. Soybean prices remain lock limit down. I noticed on the Tradestation Matrix that more than 40,000 contracts have accumulated at the lock limit down price. I am guessing that these are mostly longer-term traders who have waited too long to liquidate, and now, they are in a panic to get out! Some, like me, have already taken short positions two days ago, adding additional pressure for longs to liquidate!

Short Again for Wheat

This chart shows why the grains markets keep me so busy trading. I don't know why, but prices frequently reverse at the prior day's settlement price (light blue dotted line), as shown in this chart. Note once again that the Klinger Volume indicator has turned, but had not yet crossed below its moving average. It had lost momentum, however. This is an example of when the Klinger Volume indicator at times doesn't demonstrate its leading nature.

Keep in mind also that on the 15 minute chart, the EMA will continue to provide support and upward price pressure.

Wheat Long Again

Note in this chart that, as usual, the Klinger Volume indicator, as a leading indicator, turned up in its predictive role. I entered just as price crossed the EMA and the Bollinger Moving Average, which also turned up shortly thereafter. Prices also bounced upward off the EMA of the 15-minute chart at this same point.

Wheat Turns Lower Again!

In this chart, the three red arrows are confirmations of a downturn in wheat prices. After a strong, sustained move in one direction, I usually won't take the opposite direction until I have multiple confirmations. Here are three confirmations shown and numbered on the chart below, and explained following:

  1. The Klinger Volume indicator turns first. It is a leading indicator, and has alerted me to an imminent downturn. It has also indicated to me that I must prepare to liquidate my long trade.
  2. When prices close below the Exponential Moving Average, it is time to liquidate my long position and prepare for what may come next. Technically, this is also the best point to go short, but after such a strong move up, I want additional confirmation.
    Sometimes, following a significant move upward like this, longer-term charts (I use the 15 minute) may provide price support at a future time for prices to continue upward. However, I will take a short trade in the meantime, keeping in mind that I will keep a tight leash on the short trade, and will probably go long again when the EMA on the 15 minute chart approaches prices, providing dynamic price support. Then I will go long again.
  3. When the Bollinger Moving Average (yellow dotted line) turns down or flat, I will be ready to take a short trade once price touch the lower Bollinger Band.

Wheat Bounces Back Nicely

Since soybeans are lock limit down today, I am now trading wheat, which is rebounding nicely from its lows near the open this morning, after trading slightly down on weak volume overnight. I suspect that many other day traders are doing likewise. Look at the rebound in this chart! Nice! Look at the Klinger Volume indicator on the right side of the lower panel. It has already turned, and, as a leading indicator, is suggesting that prices may fall yet again. However, following such a strong rise, I tend to discount this indicator unless it is confirmed by other indicators (like the Bollinger Moving Average). The Klinger Volume indicator works best as a leading indicator when trading in the direction of the dominant trend, and must therefore be confirmed by a momentum and/or trend indicator (moving averages, for example).

Lock Down! Day Two!

Amazing that soybeans has now reached lock limit down for the second day in a row! Warnings by professional traders over the past few weeks suggested that the parabolic rise in prices for some commodities made conditions severely overbought and ripe for a sharp correction. This has now been borne out by the severe corrections in grains over the past few days.

Bouyant Rebound Following Dismal Jobs News

Beyond all predictions of the experts and professionals, stock market indexes have rebounded to positive territory following the abysmal jobs report earlier this morning. What a turnaround!

Trading on the Fundamentals

This is a perfect example of an instance in which market forces have done precisely the opposite of what would have been expected, defying all reason. This is why I don't trade on fundamentals-related news events. I like to be aware of the fundamentals, especially the timing of news events. However, I trade only on technical analysis. The charts don't lie or mislead! I use fundamentals news only to confirm what the charts are telling me.

Suffering Soybeans

This chart shows the overnight action of soybean futures prices. What a thing of pure beauty! This is literally a picture-perfect pattern, and is the type of trade that trainers would use to teach trading to newbies. What an easy trade! The light blue line near the bottom is the lock limit down price. Soybean prices are close to reaching lock limit down for the 2nd day in a row! Corn displays a similar chart pattern, but has much further to fall before striking its lock limit down price.
The soybean bull is off to the slaughter! Look at this daily chart today:

Dollar Continues Plunge on Bad Jobs Report

Energy and precious metals prices continue to be well-supported, with crude oil prices slightly lower on concerns that demand will weaken, while agricultural commodities are showing universal weakness. The US Dollar has fallen to new all-time lows on news that jobs have declined even more than expected with downward revisions in the previous two months as well. Fed funds futures are pricing in a near certain probability of a 75 basis point cut by the Fed when it meets in mid-March. This jobs report almost certainly will turn GDP negative, lower corporate earnings, and make a recession a near certainty.

Where's the Bull?

Grains have traded significantly lower overnight, following a pattern of the past few days. This screen capture of agriculture futures from the Bloomberg website says it all. Just look at all the agriculture futures that are in red letters versus green. In addition, the soybean futures are down nearly $2.00/bushel from their highs just a few days ago, largely on news that Brazil's grain harvests are 2-3% higher than forecast, and continue to be supported by favorable weather conditions there. Of course, any adverse weather conditions in North America during the spring planting season or summer could also drive prices much higher.

Long-Term Outlook Supportive of Prices

Long-term, the CME website indicates that China has recognized that they are incapable of providing sufficient food for their population due to a shortage of arable land. This should continue to provide long-term price support for soybean prices. Also supportive is the report by the U.S. government that U.S. grain stocks are at 60-year lows. That's saying a lot, since that is an admission that grain storage is the lowest since World War II era!

Thursday, March 6, 2008

Mixed-(Up) Grains

Grain prices closed mixed today, with corn closing almost at its settlement price for yesterday, while soybeans closed near its lock limit down price, and wheat closed up for the day. The gradual downward slope of corn and soybean prices during the first half was difficult to trade early in the day, but profitable. Wheat continues to be the most volatile of grains, with recent margin changes reflecting the tremendous volatility. The wheat margin is now more than double the margin of soybeans. It may perhaps be more profitable for traders to leave wheat alone, and trade soybeans instead.

Influence of US Dollar on Grain Prices

Here is another posting from the mid-day on the CME website. Note the acknowledgment of the influence of the sinking US Dollar on grain prices! Anyone who suggests that the debasement of the American currency has no effect on commodity prices must be either deluded, ignorant, or in denial!

May soybeans opened 3 1/2 cents higher on the session at 15.12 and established an early range of 14.59 1/4 to 15.13 1/4. Another sharp drop in the US dollar and strength in other commodity markets had traders calling for the market to open up 10-15 cents higher but speculative long liquidation selling in soybeans and follow-through technical selling from the sweeping reversal in oil helped drive the market sharply lower into the mid-session. Weekly export sales for soybeans came in at just 204,600 tonnes which was about half of what was expected. Cumulative sales, however, have reached 94.5% of the USDA forecast for the 2007/2008 marketing year as compared with 86.6% as the 5-year average for this time of the year. Good weather in South America, a revision higher in Brazil production from the Brazil government and hefty deliveries for soybeans and oil added to the negative tone and helped push the market to the lows into the mid-session. Meal sales came in at 75,900 tonnes and oil sales were 6,800 tonnes. Cumulative soybean oil sales have reached 82.7% of the USDA forecast for the 2007/2008 marketing year as compared with 48.8% as the 5-year average for this time of the year. Monthly soybean oil used to produce bio-diesel in January was just 202.9 million pounds. This was down from 219.9 million in December but still up 21% from last year. Usage was down for the 5th month in a row. Oil deliveries this morning were 1,835 contracts with soybeans at 1,469.
It is certainly noteworthy that in this CME mid-day commentary, the long-term bullishness for soybean prices is also mentioned. Imagine that before the U.S. soybean crop is even planted, 94.5% of it is already sold! That is very bullish, long-term!

Grains Prices Rebound

What a great trading day for swing traders. We are benefiting from wide swings in both directions for wheat, corn, and soybeans today. Wheat and corn have rebounded and are now trading higher for the day, and soybean prices have move off the lock limit down price and are once again moving upward.

Crude Prices Firm, But Gold Plunges

Today, several commodities are plunging in price, but particularly gold. Yesterday, gold reached a new all-time high price of $995.30/oz on the April. Gold fell nearly $30/oz. on Tuesday, after setting another all-time high price. This is a sign that bullish momentum is burning itself out.

This also appears to signal an end to the strong commodity prices surge since the first of this year. However, energy prices appear to be holding fairly firm. They are the only commodities that I am maintaining my positions on the daily charts. This seems a little surprising given that the US Dollar continues to explore lower price levels.

Deutsche Bank -- New Gold ETNs

This may spell perfect timing for Deutsche Bank. They just rolled out three new ETNs last week. Two of them are designed to short gold (one short, the other ultra short), and the third one is designed to benefit from being long (ultra long) in gold. Even the long ETN is somewhat unique and offers significant advantages to existing gold ETFs. I won't repeat here what I wrote about in my other blog. Here is the write-up on my ETF blog:

3 New, Unique Gold ETNs

Grains Extend Losses

Grains have continued to extend losses, until soybeans has reached its lock limit down price (50 cents from yesterday's settlement price). This is significant, because it has occurred twice in the past three days. I don't recall soybeans locking limit down at all in several months, and now, it has occurred twice so far this week. This is another bearish sign that the soybean bull is likely reaching an end.

Soft Soybeans, Corn

The two charts shown at the top of this post are 3 minute charts of corn and soybeans. They are decidedly bearish today, but the bearishness lacks strong conviction. This is understandable, given the strong fundamentals for continued global demand for grains. However, note also the strong selling on the daily soybean chart at the bottom.

In these two charts, the Bollinger Bands are very important. The Bollinger Bands on the soybean chart are forming a "bubble" pattern, and the Bollinger Bands on the corn chart have formed a "parrallels" pattern, per Philippe Cahen in his book, Analyse Technique et Volatilite (yes, written in French). Both are profitable, but the bubble pattern tends to burn out more quickly and be less profitable, whereas the parralels pattern tends to extend itself over a longer period and be more profitable in the long run. Interestingly, a series of bubble patterns on a shorter-term chart will often form a parallels pattern on a longer-term chart.



Soybeans Daily Chart

The two primary indicators that I look for in deciding whether to go long or short are a crossover of the Exponential Moving Average, and a downturn in the Klinger Volume indicator that crosses above or below its moving average. Both of these conditions are showing right now on the daily soybean chart, shown here below. However, today hasn't closed yet, so until this occurs, a bearish trend in soybeans has not been confirmed. The bulls could easily step in and drive prices higher, perhaps even reaching a higher close today. Even if this happens, the bullish momentum on the longer-term charts is showing signs of waning, and exhaustion appears to be in the cards (see daily chart below). This has been a great bull run!

Most likely, at the end of a very strong trend, we are more likely to see a consolidation of prices at a fairly high level, rather than a complete reversal. Even if a consolidation occurs and a trading range sets in, this sets up my favorite trading conditions as a swing trader. Further, after a consolidation period of several weeks or even months, another break-out could occur and prices could move still higher.

Soybeans and Crude Oil

The following is quoted verbatim from the website of the Chicago Mercantile Exchange following yesterday's close and soybean price weakness. The CME is the exchange that trades most soybean futures in the United States. What is notable here is that the CME acknowledges that the price of soybeans is supported somewhat by the price of crude oil. Interesting!

Soybeans, meal and oil all opened higher and surged to sharply higher levels during mid-session on a combination of buying by funds, locals and commission houses. Volume was fairly heavy on the early strength and sharply higher crude oil was also cited as a major supportive factor. However, all three markets fell sharply late in the day led by oil where floor traders indicated that large scale commission house selling in the May contract appeared to precipitate the break. This generated liquidation selling across the soybean complex.

Commodities Rebound Higher on Continued Dollar Weakness

The GSCI Commodities futures index has rebounded and moved even higher, but volume is dampened slightly from prior levels in this daily chart. If the volume indicator doesn't move above its yellow moving average line within a few days, this may be suggestive of a consolidation phase in commodity prices. If this is the case, shorter-term trades of a few days could become the order of the day. Another sign of weakening commodity price strength occurs when higher highs close within the Bollinger Bands, which indicates slowing momentum and falling volatility. Even still, some commodities (energy, for example) may continue to show extreme price strength. Note that for now, the Klinger Volume indicator has moved below its moving average.

Grains Higher Overnight

Wheat and corn are both solidly up during overnight trade, while soybeans are higher but somewhat more modestly. Malaysian palm oil was trading lower overnight, and this tends to reflect somewhat in the price of soybean oil, since soybean and palm oils have similar uses. Demand for this year's South American and North American soybean crops remain solid. Trading the weather will become the forces behind daily trading for the spring and summer months.

For the first time in several weeks, soybean prices are the weakest of the three grains. Note in this daily chart that there is some volume-based selling and that prices are substantially off their most recent highs near the $15.86/bushel area. Closing soybean prices remain barely above their exponential moving average in this chart.

Weekly export sales for soybeans, released before the open this morning, came in at 202,700 metric tonnes for the current marketing year and 1,900 for the next marketing year for a total of 204,600 metric tonnes. Meal sales came in at 75,600 metric tonnes for the current year and 300 metric tonnes for the next marketing year for a total of 75,900. Oil sales came in at 6,800 metric tonnes.

Gold Up, Dollar Down

Gold prices have now broken out solidly to the upside of their prior upper trend line (see the blue line in the daily chart below), suggesting even higher prices ahead. Meanwhile, the US Dollar has fallen to fresh new all-time lows overnight (also a daily chart). It appears that there is no end to this inflation bull, nor this Dollar bear.


USD Index

Oil $105 Yesterday, $106 Today?

Crude oil prices have continued to climb higher and higher, surpassing $105 yesterday, and reaching a price just 3 cents short of $106 overnight today.

Tuesday, March 4, 2008

Wheat, Corn Partially Recover Near Close

What a wild day! Corn and wheat prices began a strong and rapid recovery into the close of the market session today. Soybeans remained near its lock limit down price. All three closed the session down significantly from yesterday's settlement prices.


Surprise: Corn, Soybeans Lock Limit DOWN!

What a turn of events! Both corn and soybeans locked limit down today. Wheat is also much lower, down by more than 40 cents, but hasn't hit the lock limit down price. This may be the beginning of a much-awaited correction in grains and commodities in general! If this reversal is short-lived, I will look to buy on the dip.

One the CME website prior to the open of the market, the CME indicated that a sell-off may have been hinted at in selling of palm oil futures overnight in Asia, as it appears that perhaps the grains have been somewhat overbought.



Solid Profit-Taking, Sell-Off in Commodities

Very solid and broadly-based sell-offs are occurring in the commodities markets today, including agricultural commodities (grains, some softs, gold, industrial metals, and crude oil). Gold has sold off almost $30 per ounce, and crude oil has told off nearly $4.00 per barrel from its recent highs. Of the most liquid commodities, only cotton is higher and has locked limit up for the second day in a row.

The most liquid commodities have been sold, which suggests to me that this is speculative profit-taking or other traders liquidating losing long positions that they placed at overbought price levels. I consider this to be a very good opportunity to buy into the dips if this correction is short-lived. If, however, the sell-off continues over several days, this could be a correction in commodities prices that may be needed and healthy. Could this be a pin prick in what some are calling a commodities bubble? Only time will tell!

DBC ETF (Powershares Liquid Commodity Index)

Crude Oil



Grain Shake-Out!

All the grains have sold off heavily this morning. I have felt for some time that the parabolic rise in grain prices have been overdone. Often, when prices rise to far, too fast, they are subject to some very sharp corrections. I believe this will be good for the grain markets, and am still bullish for the medium to long term. This is a much-needed correction that will provide opportunity to take new positions. It may be as short-lived as lasting only for minutes or an hour or two, or it may last for several days. In 2004, and very sharp sell-off in grains occurred shortly prior to the spring planting season in the Norther Hemisphere. It lasted several days, and was extremely sharp in nature. That chart is posted on my other blog (see the link at the right side of this page). This chart shows both the 3-minute and tick charts for soybeans.

Monday, March 3, 2008

Soybeans, Wheat Touch Lock Limit UP

Both soybean and wheat prices briefly touched lock limit up prices in the opening minutes of the day-time trading session today. Corn has come very close. Prices for both have contracted somewhat, with wheat being the most volatile (profitable) thus far. Soybean prices have remained relatively high, with the retracement from the lock limit price still well-supported, thus making trading difficult to impossible. Wheat, on the other hand, has shown much of the same volatility that has been its hallmark over the past few weeks' trading, with prices retracing 36 cents from the high. This volatility allows trading to continue.

Soybean Chart

Wheat Chart

Crude Oil, Gold Reach New High Prices

Both crude oil and gold have continued today to reach new all-time high prices, with crude oil reaching $103.95/barrel on the April 08 futures contract, and gold reaching $991.90/oz. on the April 08 futures contract.


Crude Oil

Buffett: Fed "Igniting Inflation In a Serious Way"

In a lengthy and informative marathon session on CNBC this morning, Warrent Buffett, the most famous and successful investor of that past 50 years, has stated that the Bernanke Fed policies have a very high probability of "igniting inflation in a serious way". This is an interesting comment because it assumes that inflation is still somewhat contained now. More importantly, however, is the implication that inflation is very likely to move much higher still!

Gold Higher, $1,000 Just Days Away?

Dollar Drops Still Lower

The olive-colored horizontal line is Friday's closing price. The US Dollar Index has moved lower, and has recovered only partially.

Grains Broadly Higher Overnight

Corn, soybeans, and wheat prices have all moved significantly higher overnight, and especially soybeans, which have already come to within just 10 cents of their lock limit for the entire day, which is remarkable considering that we haven't even reached the day trading session yet, which typically accounts for 95% of the daily trading volume for soybeans. Bloomberg has reported that the higher soybean prices are a result of greater soybean purchases anticipated from China.