Beans Back to Reality

from Bruce Knorr:
Bulls and bears both love the soybean market, realizing it can have a Dr. Jekyll and Mr. Hyde personality.
Now the question is which one will show up this week, the good bean or the bad one?
Certainly bulls had a few doubts on Friday, when futures surged to new highs for the year only to retreat
on profit-taking, posting a bearing reversal lower for the day. Still, the selling wasn’t the complete rout that
usually accompanies a top, and futures were able to hold support at the old resistance line shattered last
week.
For once, beans seemed to trade in a world of their own last week, ignoring day in and day out moves in
stocks and crude oil. Indeed, beans were the headline, with both funds and end users rushing into buy,
according to the latest CFTC data.
Fund buying was driving by money managers emboldened by the rising tide on Wall Street to take more
risk. While the hot money is being more selective about which markets to enter, when it finds one, the
response is pedal to the metal. End users, meanwhile, fear lower South American production, especially
from Argentina, will leave world markets squeezed. U.S soybean exports remain strong in the latest
weekly report, and USDA announced more sales, primarily of new crop, on Friday.

also from Bruce Knorr this morning:
Bulls of all stripes are in retreat this morning, taking profits from the recent rally in stocks and commodities. That should lead to a lower open across the board in the grain trade.