11/30/2021

Nov 30, 2021


11/30/2021
A widespread macro sell-off with most markets seeing length exit sharply.  Most of the commodities, indexes, and other asset classes were overbought a due for a sharp correction, new corona virus concerns were the trigger to get us started.  The USDA announced the sale of 132,000 tonnes of soybeans to unknown for the 2021/22 marketing year.  Its good to see some business getting done on this price break and trade is beginning to see the potential of a big soy crop in South America.  Small grains saw some huge long liquidation today with March oats and various wheat contracts finishing limit down.  The spring wheat weekly continuous chart could see a huge key bear reversal this week with large spec funds and managed money have using the first couple days this week to exit position length.  Crude oil futures have reeled back 20% from their contract highs that were set a little over a month ago.  As of around 2:00 pm, the DOW was down 600 points and the NASDAQ was about 240 points lower.  Dollar index was around 300 ticks lower, coming off of a sharp mid-November rally.

March corn closed around 30 cents off of its most recent high.  Expect some technical buying to come in around the 555’0-557’0 area in line with our most recent low and the 50 and 100 day moving averages.
corn-chart.jpgNovember 22 beans closed below the 200 day moving average for only the second time since the average came on.  I expect the 1200 area to be defended
beans-(1).jpg

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