Soybean meal has been up 9 of the past 11 days! I had been trading soybean oil, but it has been flat for the past week. Perhaps meal deserves more of my attention! I sure like this chart! Soybeans has also continued to rise, but not as solidly and consistently as the meal. Wheat and corn are showing signs of price exhaustion the past couple of days.I am watching the grains closely, but I am also watching stocks and the Dollar. The price of grains over the past few months has been linked to both to some extent. If the Dollar drops, that will be supportive of grain prices. The same holds true to a lesser extent with stocks. If stocks rise appreciably, that is also supportive of grain prices. If, on the other hand, the Dollar rises and stocks drop, it will tend to suppress grain prices.
But what will happen if a combination of the above occurs? For example, what effect with we see on grains if the stock market tanks, and the Dollar drops also? All bets are off in that situation. Perhaps we would see a consolidation, which is typical in an environment of conflicting fundamentals.
