Soybean Futures
Soybean futures in the May contract continue their bullish momentum trading higher for the 4th consecutive session after settling last Friday in Chicago at 10.47 a bushel while currently trading at 10.75 up nearly $0.30 for the trading week all due to the drought in the country of Argentina accelerating as there are major concerns about the soybean crop at this time.
I am not involved in soybeans as my only recommendation currently is in the corn market which continues to move higher, however, I’m certainly not recommending any type of short position and if Argentina does not get rain over the next 7/10 days soybean prices could move sharply higher.
The next major level of resistance is at the $11 level as prices have now hit a one-year high trading far above their 20 and 100-day moving average as clearly this market is strong to the upside.
If you take a look at soybean meal it is now crossed the $400 a ton level as that has been the leader in this sector as Argentina’s is the 3rd largest exporter of that commodity as that is a major concern at this time and that is why you’re seeing sharply higher prices in the short-term. Traders are keeping a close eye on the next USDA crop report which will be released on March 8th as we are starting to enter spring planting as the volatility should even increase from today’s relatively elevated levels & if you are long, stay long in my opinion.
TREND: HIGHER
CHART STRUCTURE: POOR
VOLATILITY—SOLID
