The financial markets are less quiet than one might anticipate the day before the US Fed makes its interest rate announcement and issues the highly analyzed policy statement. Furthermore, the permanent bailout fund approval news out of Europe is providing a very significant support to many “risk” markets. However, we don’t expect big directional moves until after Bernanke’s statement is digested by investors and traders. We are continuing to believe the S&P 500 will march toward our technical price target of 1530, and that US bonds below 151 are in bear mode. Interestingly, silver futures are down almost 2% while gold futures are flat and platinum futures are rocketing upwards hitting $1,650 today.
Today we focus on NOV 12 soybeans futures, as this product is leading the way up in the grains markets. Corn and wheat futures are actually down on the day, while soybean futures are up approximately 2.4% as of this writing. Technically, we notice soybeans are in an upward range channel. They broke out of a “triangle pattern” in mid-August, and now are holding above the apex of the triangle at 1650. If soybeans can hold above this key pivot area of 1650-1660, we have our upward price target at $18.50. There is a deep fundamental supply and demand issue at play here in the soybeans market, and as the weather gets colder in key growing regions, we could see prices make another strong run up.