Soybean Meal Futures—Soybean meal futures in the December contract settled last Friday in Chicago at 338 a ton while currently trading at 352 as prices have hit a 27-month high continuing it’s bullish momentum higher for the 3rd consecutive session.
I have been recommending a bullish position over the last month from around the 299 level and if you took that trade continue to place the stop loss under the 10-day low standing at 329 as an exit strategy, however the chart structure will not improve for another 8 trading sessions therefore you will have to accept the monetary risk at this time.
Presently soybean meal is the strongest trend to the upside out of all of the grain sector as strong demand from China has come back and if you take a look at the monthly chart I think prices could head all the way up to the 400 level in the coming weeks ahead so stay long as I see no reason to be short. At the present time I also have a bullish soybean and wheat recommendation as I think commodities across-the-board look to move higher as we enter 2021 as historically speaking prices still look relatively cheap.
CHART STRUCTURE: POOR
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