Soybeans have been trading is sideways trading range for the past two and half months. The last attempt to test the up-sloping median line failed and the market has dropped back to test the lower trigger line. A break below the (red) trigger line is bearish and typically portends a significant price move in the direction away from the failure. Friday’s Crop Production report may be the catalyst to cause this breakout. The downside move would be aided by favorable weather conditions in South America and a stronger dollar mean the U.S. could soon see a large drop in export business. I will post information from Friday’s report as soon as it is available.
