About this chart: This is the daily continuation chart of CBOT soybeans. You can see the low ($9.94) on October 1, and the rally of $1.75 per bushel to the high ($11.69) on November 18. A 38% correction would take nearby soybean prices down to $10.91; a 50% correction takes prices down to $10.66.
What does this mean for you: I view the rally into the November 18 high as “wave one” of what should be a five-wave rally. We are looking for a signal to buy soybean futures or call options to replace the earlier sales. We are at 60% sold very early in the marketing year.