Soybean Prices Near 6 Month Lows

Soybean Prices Near 6 Month Lows
Soybean Prices Near 6 Month Lows

Soybean Futures—Soybean futures in the May contract is currently trading lower by 12 cents at 8.87 a bushel right near a 6 month low as the grain market across the board is under pressure this Tuesday afternoon in Chicago.

If you take a look at the daily chart the downtrend line remains intact and if prices break the March 29th low of 8.83 then you are looking to retest the contract low touched on October 31st at 8.71 as I see nothing bullish about this commodity at the present time.

Soybeans are trading under their 20 and 100 day moving average as the trend clearly is to the downside as prices have been trading in an $0.80 range over the last 6 months as we start to enter spring planting in the month of May as then the volatility will definitely increase substantially.

Fundamentally and technically speaking I still have a bearish bias for soybeans at this time as a 900 million bushel carryover is an overwhelming supply coupled with the fact that the Chinese trade agreement with the United States continues to be delayed which has a negative impact on prices.

Weather will be the main focus on where prices head over the next several months as we have not had a drought in the midwestern part of the United States since 2012, however that won’t start to develop until the month of June as prices still remain weak in the short term.

TREND: LOWER

CHART STRUCTURE: SOLID

VOLATILITY: INCREASING

 

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