Insights for protecting commodity profits

November beans have broken trend line support and appear to be headed for a test of the summer lows near 8.80.

This is typically how meltdowns starts!  If summer lows are broken it would open the door for a target of $8.00 or less.

Over the last month the trading range in Nov. beans has been getting compressed. This price action is likely to lead into a much bigger move in the near future.

I am watching for a breakout of the trend lines as this market is compressing together to give an indication of the next major [...]

Looking at this year’s highs and lows for November beans, we see the market is consolidating into a point, like the end of a sideways funnel.  We continue our watch to see which point of the “funnel” Nov beans break out of. Recent activity and seasonal weakness increases the likelihood we may see a downside [...]