This is not a short soybean recommendation. This message is directed to our farmer friends who actually have physical soybeans in the field. Though the bean crop is deteriorating in places across the country, there is still a very large crop to be harvested. Beans have had a nice run up in prices and if history holds these prices won't hold long. Soybean sentiment values become overbought only every year or two and we are at one of those moments now.
The weekly chart shows soybeans more overbought than they have been in years. This level is consistent with intermediate cycle tops.
The daily November bean chart is showing prices stretched well above the 200 day moving average. They are due for a pull back at the very least. The commodity channel index will be giving us a sell signal any day. Yesterday's price action left us with a shooting star candle and price overnight left us with a swing high.
Moore's Research is bearish soybeans for the last half of September. They could be a little late this year.
Seasonally speaking, September is one of the three worst months of the year for soybean prices.
If you have plenty of storage and don't need the cash we could have better prices later. You typically should reward the market. If you have beans that need to be sold however, there is no time like the present to get current and future soybeans locked in.
The Speculation page is used for educational purposes and to talk about our opinion on trades and what is going on in the market. All trade recommendations are made in "The Pit". This is also a blog page where you can ask questions, post your thoughts, or ask for help. Be sure to use an anonymous name. If you have any questions feel free to reach out to us via email.