Soybean Meal Futures—Soybean meal in the December contract settled last Friday in Chicago at 342 a ton while currently trading at 339 down slightly for the trading week as prices hit a 2 year high in Wednesday’s trade as the trend remains to the upside.
I have been recommending a bullish position from around the 299 level and if you took that trade continue to place the stop loss under the 2 week low which stands at 317 as an exit strategy, however the chart structure will improve tremendously in 2 trading sessions therefor the monetary risk will be reduced dramatically.
Soybean meal prices are still trading far above their 20 and 100 day moving average as the trend is strong to the upside as fundamentally speaking China has come back with large purchases of U.S soybeans coupled with the fact that production numbers continue to decline into harvest as this market remains bullish despite the recent setback over the last couple of days.
For the bullish momentum to continue prices have to break last Wednesday’s high of 348 in my opinion and if that does occur I think prices could trade as high as 375 in the coming weeks ahead so stay long as the risk/reward remain in your favor due to the improving chart structure.
CHART STRUCTURE: IMPROVING
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