Soybean futures continue to spiral lower losing more than 10% this week (so far) as La Nina probabilities subside with favorable weather prospects, prompting holders of long positions to scramble. Soybean futures are down over .50 cents today currently trading at $10.23 per bushel at the Chicago Board of Trade.
Assisting the liquidation of long positions of both futures & options were also key support levels taken out over the past three to four weeks causing soybeans to drop about 5% alone. Today marks the first close below the 10-week moving average for soybeans since early March.
“We’re seeing the typical hesitation to buy, rush to sell mode by traders when weather is involved,” said Laura Taylor, a senior market strategist at RJO Futures in Chicago, sharing her fundamental assessment of the soybean futures market. Taylor added, “But don’t rule out La Nina just yet because the weatherman is saying it could be delayed until September.”
The trend for soybean futures is “down” (in my study of daily charts) as of today’s .50 cent move lower. Before hoping aboard the soybean futures sinking ship, I would consider a technical bounce higher and utilizing soybean options as a hedge.
ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.