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Peak Trading Research says funds hold about 530k contracts net long, the largest since February 2017, with canola and soybeans flagged as extremely overbought. It also notes September is seasonally weak for the soy complex.
Heavy speculative length and seasonal weakness raise downside risk for soybeans, meal and oil even as lower production prospects and Chinese demand provide support.
peaktradingresearch.comDave WhitcombSep 14, 2020Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Funds held their largest net long since 2017 with soybeans flagged as extremely overbought and September seasonally weak, which sets up a liquidation-driven selloff.
Record fund net long positioning and overbought conditions in soybeans raised liquidation risk, which helps explain the sharp profit-taking selloff.
