Soybean Futures—Soybean futures in the May contract continues its bearish trend down another 27 cents at 8.21 as there is absolute panic worldwide about a massive global slowdown due to the Coronavirus a bushel or 2.74% as prices have now hit a 1 year low.
At the current time I’m not involved, but I do have bearish recommendations in oats, wheat, and rice as I see no reason to own the grain market or any commodity at this time as prices have traded lower for 4th consecutive session as prices have dropped about $0.90 over the last 8 trading sessions as I don’t believe a bottom is at hand.
If you are short a futures contract I would stay short as I think prices could touch the 7.50 level in the coming days ahead as demand is the main reason for these depressed prices as the United States is now closing restaurants and bars coupled with the fact that all sporting events have been canceled as there is sheer panic until some type of clarity comes about so look for lower prices ahead.
Soybean prices are trading far below their 20 and 100 day moving average as the trend remains to the downside as I think the only thing that could save this market is some type of weather situation which won’t come about until the month of May as that’s when planting takes place in the United States.
CHART STRUCTURE: POOR
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