Interpreting market movements in a whole new way
Interpreting market movements in a whole new way
USDAs WASDE report was out on Friday and given the weakness in price for most commodities which pushed lower and below all our playbook profit targets, we were compelled to look at any that offered some short term trade opportunities. Soybean oil stood out more than Oats which was our second favorite for a move off the bottom.
Global soybean crush for the current year shows almost unchanged, with lower crush numbers for Brazil getting offset by higher crush numbers for Argentina, India, Bolivia, Egypt, and Thailand. The meallbean meal trade is unchanged as higher exports for Argentina, India, and Bolivia are offset by lower Brazilian shipments.
Reduced rainfall in the Midwest region and northeastern States lowered yield potential. Another notable oilseed change includes lower global sunflower seed production, down 1.3 million tons, on lower output for the EU, Argentina, and Russia.
Here is the short-term trade idea for March'24 expiration soybean oil futures.
Entry range: 46.97~47.86 note that we traded into this range this past Friday
Profit target: 50.15 ~ 51.86
Chart of March'24 Soybean Oil @ZLH24
Like our analysis? Drop us a note, fill out a contact form on our website and tell us what you like trading. We invite you to subscribe for a month with no obligation to continue beyond the initial month. We offer guidance on a variety of futures instruments that can be traded as futures or options. We are sure to improve your investment/trading bottom line.
