Soybeans Under Pressure to Start the WeekFundamentals: Soybeans are under pressure to start the week, along with many other commodities and markets as last week's outside market turmoil has poured into this week's trade. This afternoon's Crop Progress report is expected to show the U.S. soybean crop near 90% planted. Good/Excellent conditions are expected to come in near 70%. Last year at this time the crop was rated 62% G/E.
Commitments of Traders Update: Friday’s CoT report showed Managed Money were net sellers of 6,505 futures/options contracts, through June 7th. This shrinks their net long position to 153,654. Broken down, that is 168,458 longs VS 14,804 shorts.
Technicals (July): July soybeans were weaker to round out the week, which gave back just a portion of the sharp rally that we saw on Thursday. 1750 is our pivot pocket, a close above or below here could set the tone for the next 25 cent move. On the resistance side, 1775-1784 is the objective for Bulls. A breakout above there puts the market back in uncharted territory which makes in extremely difficult to find high conviction resistance levels. $16.00 would be the next psychological barrier. On the support side of things, 1720-1728 is the pocket the Bulls want to defend. This pocket was previously resistance and will now act as support. If that gives way, it could spark long liquidation back below $17.00.
Bias: Neutral/Bearish
Previous Session Bias: Neutral
Resistance: 1757 ½-1760**, 1775 ½-1784**
Pivot: 1750
Support: 1720-1728***, 1690**, 1673-1679 ½***
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