Ames, Iowa Econ. On Friday, Nov. 13, soybean futures traced out a bearish key reversal.
Key reversals are technical chart formations indicating a possible change in market trend.
A bearish key reversal hints of an impending short-tern downtrend in prices. While the corn charts look less negative, fundamentals and a recent slowing of export shipments and sales suggest that corn futures prices may have additional downward price risk possible in late February and early March. Other supporting factors include tight farmer holding and a seasonal pick-up in export sales, especially for soybean oil. Until the last two weeks, an expected decline in South America s soybean plantings for the spring 1999 harvest also helped to support soybean prices. Sunflowers compete with soybeans in world markets, especially in the oil side of the demand.