Thursday, January 7, 2010

It's a Soybean Sell-Off!


Surprising, given bullish fundamentals. China is buying all it can get its hands on!


On the daily chart, today's sells-off has wiped out the previous seven days' gains. Apparently, the colder weather in the Midwest is resulting in crop damage to the winter wheat, which will likely result in those lands being planted in soybeans instead.

Note: I was told after this post that the sell-off was attributed to China's central bank signaling that rates will start to rise.