Excellent weather in the Midwestern part of the US is pushing prices lower, so Michael Seery, of SeeryFutures.com,remains bearish soybean futures and suggests keeping an eye on this trend to the downside, especially if the long Memorial Day holiday weekend sends volatility into Tuesday’s trading session.
Soybean Futures—Soybean futures in the November contract are down 5 cents hitting a fresh contract low breaking last September’s bottom, continuing its bearish momentum, while currently trading at 9.18 a bushel as I’ve been recommending a short position, and if you took that trade place, your stop loss above the 10 day high, which is now quite a distance away at 9.61, risking $.43 or $2,100 per contract plus slippage and commission. Soybean futures are trading far below their 20- and 100-day moving average telling you that the trend is to the downside as excellent weather in the Midwestern part of the United States is pushing prices lower with expectations of 3.9 billion crops possibly being harvested this October.
At the time of the breakout, which was around the 9.35 level chart, the structure was solid as the 10-day high will be lowered on a daily basis later in the week as traders are waiting the long Memorial holiday weekend, which definitely will send volatility into Tuesday’s trading session as I think lower prices are still ahead. At the current time, soybean planting is 45% completed which is a little ahead of the five-year average as the weather remains ideal with cool temperatures and adequate rain forecast for the next seven to ten days as we are off to a good growing season in 2015.
Trend: Lower—Chart Structure: Improving
By Michael Seery of SeeryFutures.com
