I have to admit that I don’t normally pay much attention to most commodities. Sure I watch what goes on with oil, gold and silver, but I don’t really look at the agriculture based commodities.
I say that, but while combing through the Commitment of Traders reports over the weekend, there was something that jumped out at me that I felt was worth mentioning. Commercial Hedgers are net long Soybean futures for the first time in over a year.
This group was the most bearish in late August through mid-September, right when Soybeans dropped over 21 percent in approximately five weeks.
From the end of August through the first week of October, Soybeans dropped from $1,465 per 5,000 bushels to a price of $1,150. The price then bounced for a few weeks, but it is now back down to the $1,150 level.
The support at $1,150 and the fact that the commercial hedgers are net long for the first time in over a year makes me think the selloff in soybeans is over.
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