June 19, 2013
Soybeans rebound from 3-month low in technical bounce
US soybean futures rebounded from a three-month low on Wednesday in a technical-buying and bargain-hunting bounce after tumbling nearly $3 a bushel from record highs set a month ago.
Soybeans had slumped to just above $15 a bushel, dragged down by persistent reports of higher-than-expected yields and fund liquidation. But buy-stops kicked in, sending the oversold market higher for the first time in three days.
Corn futures drifted lower on harvest pressure, a slowdown in ethanol production and sharply lower crude oil prices. Wheat edged higher after two sessions of declines, following the rebound in soybeans.
Benchmark Chicago Board of Trade November soybeans rose 1-1/4 cents, or 0.1 percent, to $15.31-3/4 a bushel after sinking as low as $15.04, the weakest for a front-month contract since June 29.
Buy-stops kicked in around the low, which was a 61 percent Fibonacci retracement of the market's June-through-August rally, traders said.
The contract had breached its 100-day moving average this week and filled a chart gap from late June around $15.22.