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360-289-9441(March 26, 2000) SOYBEANS: November beans are bullish again after interrupting its climb from the first trading session of the new year. It dropped 30 cents from 5.50 to 5.20 over the course of a month or more and has now recovered all of that and more. Prices went the full range on Friday from a low of 5.44 to a high of 5.57, closing near the high after considering that the drought issue was still very real. Momentum and direction indicators are mixed. Near-term stochastics are bearish, but near the top of the chart, over 70% in the short 9-day and over 80% in the 20-day; RSI is over 60 percent; direction is up and so is momentum despite the fall-off on Monday of 10 cents and Thursday of 8 cents. Up.
From the fundamentals, funds want to be long beans this coming summer quoted a Bridge News report Friday. Light rain is expected in the belt over the weekend but dry weather will return next Tuesday through Friday (bullish). Estimates of planting acreage have been growing (bearish).
May beans also went the route on Friday from 5.19-1/2 near the open to a high of l5.34 before closing at 5.30-3/4. It did not test the strong resistance level at 5.39 and has not recovered, as has the November. But is bullish with positive moving averages (9- and 18-day crossed over to the buy side). Direction is up and so is momentum in the short and intermediate terms. Only stochastics shows a bearish force at work in the short and intermediate time frames. RSI is not an issue. Up.
Meal was feeling some pressure from wheat's decline as the latter moved into competitive territory.
Martin B. Miller
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