Soybean Futures––Soybean futures in the July contract are currently trading lower by 5 cents at 8.23 a bushel continuing its bearish momentum as I have been recommending a short position from around the 8.35 level & if you took the trade continue to place the stop loss at 8.48 on a hard basis only as an exit strategy.
The volatility in soybeans is very high as that situation will not end anytime soon and will become even more violent as I think the risk/reward are in your favor to stay short as I still believe prices will retest the May 13th multi-year low of 7.91 in the coming days ahead.
At the present time I’m also recommending a bearish position in soybean meal as the grain market is mixed at the current time as the soy complex remains weak, however corn & wheat are strong due to the wet weather conditions.
Soybean prices are still trading under their 20 and 100 day moving average as the trend clearly is to the downside as the trade war with China looks to be escalating as crude oil prices are down $4 in today’s action coupled with the fact that the stock market is also melting down.
If you are short a futures contract stay short in my opinion and possibly even look at adding more contracts to the downside as the fundamental and technical picture for this commodity remains bearish.
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