Soybean futures managed to reach a five week high in very early trading today before doing an “about-face” by mid-session. Soybean futures are currently down .16c per bushel at the Chicago Board of Trade as of this writing.
Earlier this week the US National Oilseed Processors Association stated in an official report something that has never happened before – January saw the biggest soybean crush ever recorded in that particular month. A sign of things to come…? Not so fast, soybeans remain vulnerable with the South American crop looking good (so far).
Jeff Evans, Vice-President of the Managed Accounts Division for RMB Group in Chicago, shared his fundamental analysis insight regarding the current soybean futures situation by stating, “The report from the Oilseed Association may be tipping it’s hat for what could be expected for soybean futures this spring.” Evans added, “The biggest soybean crush in the history of ‘January’ can only mean one thing – demand.”
The trend for soybean futures has just turned up with the five week high being set. Although soybean futures have done a complete about-face since hitting those highs, I am looking for buy signals.
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