The price of soybeans, bean meal, and bean oil make up what commodity traders call the “crush spread” – a way of measuring the processing margin on this foodstuff. We’ve covered the last two earlier this year and now notice that beans are beginning to catch up, with Friday’s close this year’s highest. Not completely out of the woods yet as we’ve stalled at 50 per cent retracement and the lagging line has a bit of weekly cloud and trend-line resistance still to contend with. However, the big Marabuzo candle last week clearly broke through trend-line and cloud resistance, closing well above the Fibonacci 38 per cent level, underlining that we are witnessing a new secular bull market.

Nicole Elliott is a technical analyst