Soybean Futures—Soybean futures settled last Friday in Chicago at 9.31 a bushel while currently trading at 9.23 as I am now recommending a short position while placing the stop loss above the 10-day high standing at 9.42 to as the risk is around $1,000 per contract plus slippage & commission.
Soybean prices are trading slightly above their 20-day but still below their 100 day moving average with the next major level of support around the 9.00 area as the volatility is relatively low at the current time as harvest will be completed in the next week or so. South America’s crop is off to an excellent start as ideal weather conditions persist as there still is no trade agreement with China as that continues to put pressure on prices in the short-term so play this to the downside as the risk/reward is in your favor in my opinion.
At the current time my only other grain recommendation is a bearish rice trade which is lower in today’s action as the grain market as a whole remains weak. This year’s crop produced around 3.55 billion bushels which is 900 million less than the 2018 crop, however the main problem here is demand coupled with high carry-over levels especially so play this to the downside.
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