* US bean market continues diving lower
* Pintos dealers running for cover while growers maintain stance
* Soybeans test $15.00/bu
* Risk Negative feeling creeps into markets
Well hello there again bean fans, we hope everyone is having a great week so far and welcoming fall as we head into the final quarter of the year! Things are harvesting along at a tremendous pace as beans begin pouring onto the market from major bean producing states. Commodities have taken a back seat the last 2 weeks and soybeans are currently testing the $15/bu support zone as long position traders are hoping for a bounce off this level to continue an chance for a rally, but corn has been slow to react and provide the uplift needed to spur on demand. Dry bean growers are going to be put to the test here the next few weeks as market supply increases and futures traders try their best to break some important psychological levels in the market.
Pinto dealers continue their kamikaze trajectory towards $35 and perhaps lower while growers are trying stay above the $30 handle themselves. Dry edible bean growers are holding off on lower offers trying to wait out corn and soybeans. The million dollar question is: “will corn and soybeans bounce?” Growers and dealers alike are hoping for higher values to continue in the face of a big supply this year, I’m not so sure they’ll get it but I’m going to enjoy watching either way it goes that’s for sure!
Overall in the dry bean market there is still a feeling of cautious and risk averse trading going on. Everybody needs and wants new crop beans but with a trend of lower values the past couple of weeks it seems big bean buyers are going to play the wait and see approach with regards to any meaningful volume transactions.
The first US presidential political debate is happening tonight between both candidates, and which ever market you trade ; you can be sure after this evening volatility will pick up until the US political landscape gets resolved in November.
Bottom line: Keep eating beans guys their good for you! Just be careful trading them!