Soybean Meal Futures—Soybean meal futures in the December is trading higher by $1 at 306.5 a ton as I have been recommending a bullish position from around the 306 level and if you took that trade continue to place to stop loss under the contract low which was hit on May 13th at 291 as an exit strategy.
Harvest will start to begin next week as we will start to see final production numbers as there are still wide variances on the 2019 crop, however the main problem facing soybean meal is the fact that we do not have a trade agreement with China and it doesn’t look like that’s going to happen anytime soon.
The main reason why I am recommending this trade is due to the fact that prices broke out of a tight 9-week consolidation pattern as this was strictly technically driven as I do think a longer-term bottom is in place and if there is any good news about trade with China this market could go substantially higher.
Meal prices are trading above their 20 but still below their 100 day moving average as the trend is higher to mixed, but I do believe the risk/reward is in your favor so stay long & continue to place the proper stop loss as I want to give this trade some room.
CHART STRUCTURE: POOR
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