Yesterday, I mentioned that prices for soybeans appeared to be feeling a little oversold to me. Prices moved modestly higher last night during evening trading. This chart shows the soybeans long trade out of the starting gate this morning. It was good for more than $1000/contract at its peak. It is so strong, it may continue.
The second chart shows the daily chart for soybeans, finding support this morning at both the lower Bollinger Band and the 50-day Moving Average. While there is still a strong offer sentiment expressed by the Klinger Volume indicator, prices are showing some resiliency today.
Price support may also be due to a rebounding stock market and reduced fears of a recession. Global demand for food commodities should provide additional support over the medium to long term. Perhaps this will lead to soybeans trading in a range for a period of time. If the U.S. financial markets rebound from here, prices for commodities should remain well-supported.
Thursday, January 24, 2008
Soybeans Fired Up Out of the Chute
