Soybean Futures—Soybean futures in the November contract is trading sharply higher this Wednesday afternoon in Chicago up another $0.15 or 1.73% at 8.97 a bushel as prices are right near a 4 month high.
The USDA crop report that was released yesterday showed that around 83 million acres were planted as expectations were higher than that number sending prices higher as I had a bearish bias towards this commodity, but that report may have turned the tide. Soybean prices are now trading above its 20 and 100 day moving average as the trend has turned to the upside, but I will wait for better chart structure to develop as the risk/reward is not your favor in my opinion as we are still experiencing ideal weather conditions in the Midwestern part of the United States.
Corn prices have also rallied significantly as they had about 4 million less acres planted than expected sending prices near a 4 month high as historically speaking soybean prices are cheap, however I still don’t believe we are in a strong bullish trend at this time so be patient as the risk / reward needs to be more in your favor to take a bullish or bearish position.
CHART STRUCTURE: POOR
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