Given the recent news (Friday 13th) out of Cargill's main Argentinean crushing plant in Rosario, relating to a shortage of soybeans resulting in the suspension of operations out of the South American plant until March 2014 coupled with continued pressure from western heat waves in the U.S, how will beans fair in the coming weeks?beans2
With resistance coming in at 14.10 my suggestion is, that if traders factor-in the recent news out of Argentina onto their positions for this week we could see a close above this level and thus sparking a bullish movement towards 15.00. With the September contract now gone off the board, focus is now on the November contract and a Brazilian planting season which should kick off within the coming days, however with continued dryness in key states such as Mato Grosso farmers will enter the new season with degree scepticism and a rush to plant new beans will be tested from a weather perspective as fears of a lower yields due to inconsistent rain periods are forecasted. Do I smell fear premiums on the way?
As always, use stops and keep an eye on the 10-handle rule. Don't forget to catch MrTopStep on The Closing Print video found under the OptionsTV page (top bar). We report directly from the SPX pits, wrapping up the day and positioning for trade tomorrow.
OptionsProfits can be followed on Twitter at twitter.com/OptionsProfits
MrTopStep can be followed on Twitter at twitter.com/MrTopStep