Update: Soybeans - October 2016

 This post updates the chart presented in our October 2016 post for soybeans after the October bottom. It also contains a chart showing major PTVs[1] in the cash soybean market.

 Geometry analysis

 Figure 1 is a daily price-time chart for cash soybeans at Central Illinois. It is an update for the chart presented in our previous post. Soybeans bottomed on October as expected and turned up. The reader should remember that October is the most important month in soybeans for extreme low prices.

Figure 1
Daily cash prices for soybeans at Decatur, Illinois from 2015 to 2016. Update from previous post. A projection for a PTV of length 180 starting from the October 2016 bottom.

  The chart shows the last completed PTV has length 253.21. It's very common to see paired PTVs of lengths 252 and 180 together. The sum of these numbers equals 432 or the Third Square of Twelve. Based on that fact, we present a PTV projection from the October bottom.

 The next important cycle should turn in late December 2016. Perhaps we will see a top at that date or another acceleration bottom.

Figure 2
Daily cash prices for soybeans at Decatur Illinois from 2012 to 2016. Major PTVs completing defining important trend changes. Two major PTVs from the July 2012 top complete on the March  and October 2016 bottoms with lengths related to the Third Square of Twelve.

 Figure 2 is a daily price-time chart for cash soybeans from 2012 to 2016. It shows several PTVs defining important moves on the cash market. The two major PTVs starting at the July 2012 top and ending at the March and October 2016 bottoms have lengths equal to 3x432 = 1296 and √10x432 = 1366.10 respectively. This is another indication that the market is going up.

 Summary

 We presented a short update on the cash soybean market. According to our analysis the market has most likely resumed it's way up. The next turning point is expected for December 2016.

 [1] PTV stands for Price-Time Vector. This concept was introduced by Bradley Cowan in his writings. Both PTV and Price-Time Vector are trademarks of Bradley Cowan.

Next post: Soybeans Roadmap Recap for 2016

 Ricardo Da Costa

 Grain Market Analysis