On June 26, Soybean prices rocketed to a new all-time high and took the entire grain complex by storm -- literally. According to the mainstream experts, severe thunderstorms in the already inundated Midwest region are lifting the market’s tide.
See: “Soybean soars after more showers walloped the Midwest, threatening flood-battered crops just as they were showing signs of improvement. Excess rain has been the biggest driver of prices.” (AP)
News flash: The Midwest has been submerged under water since the initial spring floods began on March 17. But look at a Soybean chart and you'll see that since then, not only gains, but also losses have rained down upon the soybean market.
So, it seems that soy is following not just the weather patterns, but also something else. What? How about the Elliott Wave pattern laid out by Elliott Wave International’s senior commodity analyst Jeffrey Kennedy in the March 2008 Monthly Futures Junctures:
“I have labeled the recent peak as the termination point of wave (3), thereby setting the stage for a wave (4) decline… Once complete, I fully expect the recent uptrend to continue to much higher levels.”
(Soybeans Set A New Record. Right now, the June 2008 Monthly Futures Junctures “Featured Market” reveals exactly “How High” soybean, corn and wheat prices can go -- while the June 26 Daily Futures Junctures tackles the near-term side of the grains’ future. Click here for all the details.)
To reinforce his analysis, back in March Jeffrey also presented the following price chart of soy’s projected course.
A sharp sell-off to four-month lows followed into early April. In accordance with the Fibonacci guidelines of Fourth Wave corrections, prices ended at the .382 retracement of wave one and the price territory of the previous fourth wave of one lesser degree.
It was only since April that soybean prices have enjoyed a bumpy ride to new record highs.
Now, in the June 26 Daily Futures Junctures, Jeffrey Kennedy revisits soybeans -- along with its two grain brothers, Corn and Wheat. In this issue, Jeffrey explains the analytical technique of examining previous and forward month price charts of a commodity to key in on significant turning points today.
The complete Daily Futures Junctures and June 2008 Monthly Futures Junctures texts are just a click away. Let the opportunity in grains rain over you today.