Stay Short Soybeans

Stay Short Soybeans
Stay Short Soybeans

Soybean Futures—Soybean futures in the November contract is currently trading lower by 12 cents at 8.68 a bushel continuing its bearish momentum as excellent weather conditions over the weekend continue to put pressure on prices in the short-term.

I am kicking myself for not recommending a short position as I do think lower prices are ahead as there still is a high probability in my opinion that prices will retest the May13th contract low of 8.15 in the coming weeks ahead as weak demand continues to push prices lower. Soybean prices are trading under their 20 and 100 day moving average and if you are short a futures contract continue to place the stop loss above the 2 week high standing at 8.97 as an exit strategy as the whole grain market looks weak.

My only recommendation is a short wheat trade which continues to melt away on a weekly basis as I do think the soy complex looks expensive despite the fact that the crop is way behind schedule as we will certainly not produce a record in 2019.

Inventories are at all-time highs as that is the main problem so if you are short a futures contract continue to stay short while maintaining the proper money management risk of 2% of your account balance on any given trade.

TREND: LOWER

CHART STRUCTURE: SOLID

VOLATILITY: AVERAGE

 

If you are looking to contact Michael Seery (CTA—COMMODITY TRADING ADVISOR) at 1-630-408-3325 I will be more than happy to help you with your trading or visit www.seeryfutures.com

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Email: mseery@seeryfutures.com

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