Soybean Futures Riding on Rainfall
We ended a rather volatile week of trading with a rather boring day today. For the day, the November contract gained 5 ½ cents. For the week, the November contract lost 9 ¼ cents.
With the major weather models differing greatly on rain and heat for late next week, it seems many in the trade were happy to wait until the updated maps come out on Sunday to press the market in one direction or another. The dry area of the country shrunk back this week but some of the key bean growing regions of the country missed out on the rain. Additional rain will be needed very soon in the missed areas or the odds are the bean crop will continue to decline.
Early thoughts are the crop ratings will decline again on Monday. Look for technical support to develop around the low end of the recent range ($10.00 to 9.80) basis the November contract with resistance at the $10.30 to $10.50 area. Sunday opening direction will be dictated by the updated weather maps as we are entering the critical phase of pod setting. If rain is not on the maps, look for a gap higher open.
Rich Nelson | Allendale Inc. | 815-578-6161
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