It's no secret crop prices struggled in the second half of 2008. Much of the blame rests with the collapse of global financial markets, but a big increase in production also contributed. Corn and wheat stocks are on the rise, at least currently.
The soybean market faces slightly friendlier fundamentals. USDA officially projects no increase in stocks for the 2008 marketing year. And strong first quarter exports suggest their forecast of sales may be too low. Little wonder, then, that January soybeans are trying to break out of their recent range, showing a wedge formation that often foreshadows a move.
Ah, but not everything is bullish in bean land, which is why traders are holding back, waiting for January to confirm a move to close a gap at $8.71.To read