Soybeans Higher Break 7 Day Losing StreakSoybean futures in the January contract is trading higher by 2 cents at 8.79 a bushel breaking a 7 day losing streak as this market could possibly be experiencing oversold conditions at this time.
Harvest in the United States has been wrapped up as we will now focus on the 2020 crop as I have been recommending a bearish position from around the 9.23 level and if you took that trade continue to place the stop loss above the 2 week high which now stands at 9.17, however the chart structure will improve on a daily basis therefor the monetary risk will be reduced significantly in the coming days ahead.
Soybean prices are trading far below their 20 and 100 day moving average as this trend is strong to the downside as I still believe as I’ve stated in many previous blogs I think prices will test the contract low which was hit on September 9th at 8.65 in the coming days ahead as a trade agreement with China still has not been written in stone.
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At the current time this is my only grain recommendation as soybean meal continues to head lower putting pressure on soybean prices so stay short as picking a bottom is extremely dangerous in my opinion.
CHART STRUCTURE: IMPROVING
This article was written by Michael Seery (CTA—COMMODITY TRADING ADVISOR) www.seeryfutures.com