September 11, 2009
CBOT soy still trapped in a downtrend
The soy market is still at the mercy of bearish trends.
Chicago Board of Trade November soy futures this week dropped to a six-week low of US$9.10 1/2 a bushel. That price level is now solid technical support. Below that lies psychological support at US$9.00 a bushel.
The soy market bears still have the near-term technical advantage. November soy remain trapped below a four-week-old downtrend line drawn from the August highs.
Technical resistance for November soy lies at the US$9.55 level and then at US$9.63. Strong technical resistance is located at the US$9.80 level.
Seasonality price studies for soy futures do show prices trending solidly lower from the August timeframe into the October timeframe.
