Soybean Futures—Soybean futures in the January contract is breaking a 2 day winning streak down $0.04 at 9.14 a bushel as this commodity is looking for some fresh fundamental news to dictate short-term price action as the volatility has come to a crawl.
I have been recommending a bearish position from around the 9.23 level and if you took that trade continue to place the stop-loss above the 10-day high standing at 9.41, however in tomorrow’s trade that will be lowered to 9.39 on a hard basis only as I’m not willing to risk any more than that area. At the present time it looks like there will be a trade agreement with China, but until that is etched in stone I think prices will continue to decline as the chart structure is excellent at the current time therefor the risk / reward is in your favor.
One interesting fact is that the large money managed funds are long which means they believe higher prices are ahead and so far they have been wrong and if prices continue to decline they will have to exit as that could fuel further liquidation to the downside.
For the bearish momentum to continue prices have to break the November 14th low of 9.11 as major support stands at the 9.00 level as my only other grain recommendation is a bearish rice trade which might be stopped out in today’s trade as these 2 commodities can go in opposite directions
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