Soybeans Higher On Argentina Drought

Soybean Futures— Soybean futures in the May contract are trading high by 9 cents at 10.46 a bushel continuing its bullish momentum experiencing around a 80 cent rally since the lows that were created on January 12th all due to the fact of the drought possibly affecting yields in the country of Argentina.

Soybeans have been riding the coattails of soybean meal as Argentina is the 3rd largest exporter of that commodity as that market continues to move higher hitting another contract high in today’s session as the soy complex is in a full-blown weather market as the volatility certainly has expanded.

If Argentina does not receive adequate rain over the next 7/10 days you will see higher prices across the board as soybeans probably will retest the $11 mark in my opinion, however I’m not involved in this market as the risk/reward are not in your favor coupled with the fact that the chart structure is terrible.

Soybean prices are trading above their 20 and 100 day moving average as clearly the trend is higher as this market was extremely choppy over the last 6 months until this recent rally, however if adequate rains do surface prices will drop rather precipitously as you have to remember Brazil is expected to produce another record crop this year is that is the Garden of Eden down in that area, but if your not involved in soybeans at the present time look at something with less risk.

TREND: –HIGHER

CHART STRUCTURE: POOR

VOLATILITY—HIGH

If you are looking to contact Michael Seery (CTA—COMMODITY TRADING ADVISOR) at 1-630-408-3325 I will be more than happy to help you with your trading or visit www.seeryfutures.com

Skype Address: mseery [email protected]

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