Soybean Futures—Soybean futures in the November contract settled last Friday in Chicago at 8.79 a bushel while currently trading at 8.62 down about $0.17 for the trading week as prices are hovering right near a 3 month low. I have been recommending a bearish position from the 8.80 level and if you took that trade continue to place the stop loss above the 2 week high which stands at 8.97, however the chart structure will improve on a daily basis starting next week therefor the monetary risk will be lowered.
At the current time I also have bearish recommendations in wheat and in rice as I think the whole grain sector continues to head lower as China has announced tariffs on another 75 billion dollars worth of U.S goods starting on September 1st as that is a bearish indicator towards grain prices and especially for soybeans.
For the bearish momentum to continue prices will have to break the August 5th low of 8.54 in my opinion and if that does happen look for a retest of the contract low which was hit on August 13th at 8.27 as I see no reason to be a buyer of this commodity. Soybean prices are trading under their 20 and 100 day moving average coupled with the fact that the downtrend line remains intact so continue to play this to the downside as there is more room to run.
CHART STRUCTURE: SOLID
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