Don't look for funds to build a short position right now, which means the downside should be limited for beans. The crop is getting smaller. The trend is clearly down and that shouldn't change in the November Crop Production Report. Harvest is all but wrapped up. The threat of harvest pressure should also be just about done.
Demand is strong.
Foreign buyers have been aggressive buyers of U.S. soybeans recently and last week's price drop should ensure that continues. Keep an eye on Brazil . Even though fundamentals have improved for beans, traders will still be watching action in Brazil closely. If the weather pattern changes and key bean regions start getting more rain on a consistent basis, traders will be hesitant to push bean futures too high. If the pattern remains dry in key bean regions of Brazil, however, the market has solid upside potential.