Sunday, April 30, 2017

I don't want to dwell on prices and who gets the money, but, agricultural products are commodities on the financial exchanges.

April 17, 2017
By Marcus Ludtke

...Technical Momentum: (click here)

When November soybean futures broke to and held the calendar year day low of $8.68 per bushel on March 2nd, there was almost an immediate momentum shift in prices. Prior to that for an extended period of time (from approximately 12/28/2015 through 3/3/2016) November soybeans had traded in a very narrow range of 25-cents per bushel ($8.89 to $8.64). This resulted in the 35, 50, and 100-day moving averages in SX6 all converging on top of each other. This in turn created the possibility for November soybean futures to close over all 3 key moving averages in one trading session if SX6 could muster just one sharply higher close. That’s exactly what happened on March 4th when November soybean futures closed up 13-cents per bushel at $8.91, triggering the soybean rally. Just 4 full trading sessions later November soybeans would add the 200-day moving average to that list of key resistance levels now penetrated. The end result was a major technical momentum shift in futures values to the upside.....