New Contract Highs In Soybeans: Will They Go To All-Time Highs?

02 Apr in Blog, commodity broker, corn futures, futures broker, futures trading, Kansas City wheat, Michael Seery, Minneapolis wheat, oat futures, option broker, rough rice futures, Seery Futures LLC, soybean futures, soybean meal futures, soybean oil futures, wheat futures

The grain market shot up for the 2nd consecutive day rallying on last Fridays USDA crop report once again with soybean futures for the May delivery leading the charge up $.19 to close at fresh contract highs at 14.22 a bushel in Chicago today. Corn futures for the May delivery shot up another $.11 to close at 6.55 a bushel after Friday's $.40 limit up move off of lower stockpiles of corn which surprised the market, last Thursday the December contract hit fresh contract lows before the report. December corn however was only up two cents a bushel while wheat futures for the May delivery were down four cents to close at 6.57 a bushel. Oats for the May delivery were down six cents to close at 3.35 a bushel while rough rice added another $.12 to the upside looking to break out to 3 month highs in the May contract closing at 14.88 a bushel. Soybean meal also hit fresh contract highs up 250 points to close at 391.20 a ton while soybean oil hit new highs closing up 106 points continuing its bullish momentum. In my opinion I think the soybean complex will continue to move higher and I would still avoid the wheat and corn markets for they are choppy in the last six weeks with straight up and straight down moves but no real direction. Soybeans have bullish fundamentals behind them with solid chart structure a bullish momentum with the next resistance around last September highs of around 14.85 a bushel and if we break those soybeans might retest all-time high is around $16.00 a bushel which happened in 2008 when many of the other commodities were also at all-time highs. Volatility in the soybean market has increased substantially since last Fridays report, as I have been saying in previous blogs I thought volatility would increase going into spring and summer months which it historically has in the past. Look for the volatility to come become even more extreme in the next 3 to 5 months especially if any weather problem persists such as flooding or a long-lasting drought in the Midwest. If you are looking for a futures broker feel free to contact Michael Seery at 800-615-7649 and he will be more than happy to help you with your trading.

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