Soybeans Find Their Footing

Soybeans
Fundamentals: Soybean futures are higher this morning after yesterday’s crop progress report showed a drop in good/excellent conditions of 3%. Keep in mind that we are still 5% better than where we were at this time last year. All eyes will be on Thursday’s USDA report. The range of estimates for planted acres is 89.2-92.4 million, the USDA was at 91.0 in March. The average estimate for US soybean ending stocks as of June 1 is .954 billion bushels. Last year at this time we were at .769.

Technicals (August): Soybeans are higher this morning as the market works to retrace and recoup the losses from the big down day last week. In yesterday’s report we talked about our pivot pocket at 1533 ½, stating “If the Bulls are able to chew through this level, we could see a bigger relief rally take us back to the other breakdown points from last week, which are anywhere from 30 to 70 cents higher.”. With that in mind, we would not be surprised to see additional relief come into the market ahead of the USDA report on Thursday.

Bias: Neutral/Bearish
Previous Session Bias: Neutral/Bearish

Resistance: 1560-1566***, 1592-1597***
Pivot: 1533 ½
Support: 1494 ¾-1500****, 1451*

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