Soybean Oil Futures—Soybean oil futures in the July contract is slightly higher for the 3rd consecutive session up only 4 points at 28.37, however it was the only member of the grain market that finished higher as profit-taking took down corn and soybeans in my opinion.
In the state of Illinois we are now experiencing some dry weather as planting is in full swing for soybeans as that is why I think you saw prices head lower in today’s trade as spreading between soybean meal and soybean oil took place.
I have been recommending a bullish position from around the 28.00 level and if you took that trade the stop loss is going to remain at the contract low which was hit on May 13th at 26.21 as an exit strategy, however if prices continue to climb higher I will change that stop loss in next week’s trade therefor lowering the monetary risk.
Soybean oil is trading above its 20 day moving average while still below its 100 day which stands at the 29.00 level as that would be a significant breakout if that level is breached so continue to play this to the upside as I still think the risk/reward are in your favor.
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