The oilseed complex has been well supported by the strong vegetable oil market. This is evidenced by the steep uptrending channel illustrated on the monthly soybean oil chart. This rally began with the development of a “two-month reversal” back in July 2010. This particular “two-month reversal” is seen at the bottom of a downtrend and […] Read more
Drozd: Soybean oil lends underlying support to canola
Feeder Cattle Prices End On A New Historical High
Reading Time: 3 minutes What a difference a year makes! In December 2009 feeder cattle prices were down challenging an area of support at $90. Prices quickly bounced off the line of support, as illustrated in the accompanying chart, and by the end of December a two-month reversal materialized, which indicated prices were about to turn back up. In […] Read more
Drozd: Feeder cattle prices rally to end 2010 on new historical high
What a difference a year makes! In December 2009 feeder cattle prices were down challenging an area of support at $90. Prices quickly bounced off the line of support, as illustrated in the accompanying chart, and by the end of December a two-month reversal materialized, which indicated prices were about to turn back up. In […] Read more
Drozd: Two-week reversal signifies bottoming action in U.S. dollar index
The U.S. dollar had been under pressure since prices peaked at 89.098 in June 2010. However, that price slide came to an abrupt halt shortly after the U.S. Federal Reserve announced another US$600 billion stimulus package at 1:15 p.m. CT on Nov. 3. Listening to the news, one would have thought this highly anticipated announcement […] Read more
Drozd: Record-high cotton prices lent underlying support to soybeans
Cotton prices on Nov. 4 reached $1.4052 per pound, the highest price since this fibre began trading 140 years ago. Prices have doubled in the past 12 months amid a supply shortage and increasing demand, especially in emerging markets in Asia. The U.S. Department of Agriculture estimates 2010-11 world ending stocks will be down 26 […] Read more
Record Longs Drive Corn Price Rise – for Oct. 25, 2010
Reading Time: 3 minutes Corn prices have rallied $2.50 per bushel, since the market stopped going down on June 29, 2010. Some of the buying is a result of hedgers locking in prices before the market goes higher. But to a larger degree, it is the large speculative buy orders that have driven prices to $5.73 per bushel, a […] Read more
Drozd: Record quantity of speculative long positions drives corn prices higher
Corn prices have rallied $2.50 per bushel, since the market stopped going down on June 29, 2010. Some of the buying is a result of hedgers locking in prices before the market goes higher, but to a larger degree, it’s the large speculative buy orders that have driven prices to $5.73 per bushel, a level […] Read more
Drozd: Large speculative buying drives soybean prices into overhead resistance
Soybean prices have rallied $1.50 per bushel on speculative buying over the last two months. Cash prices in the Red River Valley have risen to $9.50 per bushel and this year’s crop is in relatively good condition. The U.S. soybean crop is also in very good shape with the U.S. Department of Agriculture estimating U.S. […] Read more
Wheat: the trend is your friend until the end – for Aug. 30, 2010
Reading Time: 2 minutes Wheat prices recently rallied over $3 per bushel in as little as six weeks on speculative buying and short covering. Farmers are now wondering when the rally will end. Technical analysis is very useful for determining current trends and trend changes. Some analysts rely on moving averages and others simply draw trendlines. Here is an […] Read more
Drozd on wheat: The trend is your friend until the end
Wheat prices rallied over $3 per bushel in as little as six weeks on speculative buying and short covering. Farmers are now wondering when the rally will end. Technical analysis is very useful for determining current trends and trend changes. Some analysts rely on moving averages and others simply draw trendlines. Here is an explanation […] Read more
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