Despite a dead cat bounce in beans overnight that took the May futures up to 1007.6, the rally was short lived as funds remain in liquidation mode on rallies. Beans settles slightly lower with the second consecutive daily close below the 10.00 threshold but above key support at 9.92. In the last eleven trading sessions spot beans have fallen over 64 cents from high to low before a slight recovery near the close. With the Fed rate decision and export sales looming, there was reluctance at least for today for asset managers to unwind further long positions. In my view it may be only a matter of time before we see a washout with new multi-monthly lows seen. Key support comes in at 9.92, and then 9.80. If 9.80 can’t hold its my opinion that beans could fall all the way back to 9.56. Resistance lies up at the key 200 day moving average at 10.20 basis May futures. A close over 1020.0 takes the market up to 10.35.
