Soybean Futures—Soybean futures in the July contract are unchanged at 8.67 a bushel as heavy rains have entered the midwestern part of the United States as we are awaiting the weekly crop planting progress report which will be released this afternoon.
If you have been following any of my previous blogs you understand that I am bearish soybean prices as the large money managed funds are short a record 130,000 contracts as they truly believe lower prices are ahead. Fundamentally speaking this market remains extremely weak as massive supplies worldwide coupled with the fact of very weak demand because of the fact that we have not had a trade agreement with China and that doesn’t look too come to a positive solution anytime soon.
Soybean prices are trading under their 20 and 100 moving average as clearly the trend is to the downside as we are at yearly support & if we can break the 8.60 level I think prices could head down to 8.10 as I see no reason to be a buyer of this commodity.
Volatility in soybeans is average at the current time, however as we progress into the summer months that will expand tremendously generally to the upside so if you are short a futures contract stay short in my opinion.
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