Soybean Meal Futures—Soybean meal futures in the December contract is sharply higher this Tuesday afternoon in Chicago up $13 a ton at 359 hitting a 27-month high as strong demand from China continues to push prices higher on a monthly basis. I have been recommending a bullish position all the way back from the 9.14 level and if you took that trade continue to place the stop loss under the 10-day low standing at 329, however the chart structure will not improve for another 6 trading sessions as the monetary risk will remain the same.
The chart structure at the current time is terrible due to the fact that prices have run up substantially over the last couple days as I still think we could test the 400 level in the coming weeks ahead.
Yesterday’s crop report showed that 38% of the soybean crop has been harvested which is ahead of schedule, but is having very little impact on prices in today’s trade. If you take a look at the weekly chart I believe prices will test the 404 level which was hit a couple years back as there is still room to run as it has a terrific thing to see the grain market have a substantial rally across the board over the last couple of months as the U.S farmer will certainly benefit.
CHART STRUCTURE: POOR
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