Soybean Futures—Soybean futures in the November contract is higher for the 2nd consecutive trading session up another $0.08 at 9.14 a bushel as I am now recommending a bullish position while placing the stop loss under the 10-day low standing at 8.83 as the risk is around $1,700 per contract plus slippage & commission. In my opinion I do think a long-term bottom has been created in the soybean complex as I’m also keeping a close eye on soybean meal to the upside as I do think weather conditions in the Midwestern part of the United States are showing hot and dry conditions which could hurt production numbers come harvest time.
The State of Iowa witnessed terrible storms destroying over 10 million acres as I think that is a bullish fundamental factor to the upside as I believe higher prices are ahead. Soybean prices are trading above their 20 and 100 day moving average as the trend is to the upside as many commodity sectors look to move higher in my opinion.
The next major level of resistance stands around the 9.30 area which could be touched this week as I think the volatility will start to expand tremendously to the upside as historically speaking prices still look cheap and if the trade agreement with China is solidified that would be a very positive influence going forward.
CHART STRUCTURE: IMPROVING
If you are looking to contact Michael Seery (CTA—COMMODITY TRADING ADVISOR) at 1-630-408-3325 I will be more than happy to help you with your trading or visit www.seeryfutures.com
If you’re looking to open a Trading Account click on this link www.admis.com
There is a substantial risk of loss in futures and futures options. Furthermore, Seery Futures is not responsible for the accuracy of the information contained on linked sites. Trading futures and options is Not appropriate for every investor.