Wet Weather Pushes Soybean Prices Higher
Michael Seery of Seery Futures - InsideFutures.com - Mon May 20, 2:57PM CDT

Soybean Futures---Soybean futures in the July contract is sharply higher this Monday afternoon in Chicago up $0.15 at 8.37 a bushel as the entire grain sector is higher across the board on concerns about flooding as the Midwestern part of the United States is continuing to experience cold and wet weather conditions.

Traders are awaiting this afternoon's crop progress report with estimates around 30% planted as that is behind the 5 year average of 44%, but at this point in time it's not of major concern. I have been recommending a bearish position from around the 8.35 level and if you took that trade continue to place the stop loss at 8.48 on a hard basis only as I'm not willing to risk anymore due to the high volatility that we are experiencing.

The trade war with China has certainly depressed prices over the last 6 months coupled with the fact that we could produce 4.2 billion bushels in 2019 which would increase carry over levels which are standing near 1 billion right now as there is still nothing bullish fundamentally speaking about soybean prices.

At the current time I also have a bearish soybean meal trade as that is higher following the coattails of the bean market. Traders will keep a close eye on the next 7/10 day weather forecast as it still looks like cool and wet weather is ahead as it has been an absolutely miserable spring, but stay short and continue to place the proper stop loss.

TREND: ---LOWER

CHART STRUCTURE: EXCELLENT

VOLATILITY: HIGH

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