Soybean Futures—Soybean futures in the May contract is trading lower for the 3rd consecutive session after settling last Friday in Chicago at 8.91 a bushel while currently trading at 8.51 down another 40 cents due to the Coronavirus curbing demand.
At the current time I’m not involved, but I do think lower prices are ahead as I have multiple bearish grain recommendations presently and if you are short stay short in my opinion as the commodity markets across the board look to remain weak in the coming weeks ahead. Soybean prices are trading far below their 20 and 100 day moving average as this trend is getting stronger on a weekly basis and until some type of resolution with this Coronavirus comes about I see no reason to be a buyer.
The next major level of support is around the 8.25 area and if that is broken you could possibly break the $8 level in the coming days ahead as spring planting is right around the bend as then this will become a weather market which will certainly dictate short-term price action. There is absolute panic across the board as nobody wants to own anything as the stock market had its worst day since 1987 yesterday as that is also putting pressure on soybeans and the grain market.
CHART STRUCTURE: POOR
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