After being down by as much as 6c earlier, beans have come back to around unch.
Recently, the trade has been buying corn and selling beans because of wet weather and planting delays in the US..........expectations that this will lead to farmers deciding that beans will be a better risk, with late planted corn, often not doing as well as early planted corn.
November beans have huge support at 1025 from the lows 2 weeks ago.
Those have barely held and we are at 1027 but still down over 10c and not looking so good.
Rough day for the beans. SX down 17c.
SN down 23c and for the first time in awhile, cheaper than the SX by over 6c.
A trading associate tells me that the bounce in the last few minutes of trading is a potential buy signal in the beans.
I'm not buying on that but the beans have had a pretty sizeable correction, are about to test their bull uptrendline and the big funds have liked the long side......going into the growing season, where risk premium either comes out or goes in based on the weather.
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If the heat ridge we have building in May continues to be the new pattern that is still there on forecast maps at the end of the month, then beans will be higher at the end of the month than they are right now.
If the heat ridge gets us planted faster, then is gone at the end of the month..........the highs are in...........possibly for the year unless we have the dome of death parking over the Midwest for a couple of weeks at some point during the Summer.