Have Soybeans Hit a Market Bottom?

January soybean (ZSF26) futures present a buying opportunity on more price strength.

See on the daily bar chart for January soybean futures that prices have made a strong rebound from this week’s low to suggest the bears are exhausted and that a near-term market bottom is in place.

Don’t Miss a Day: From crude oil to coffee, sign up free for Barchart’s best-in-class commodity analysis.

 

Fundamentally, the global supply and demand balance sheet for soybeans is tight amid solid worldwide demand, especially from China. This week’s news that President Donald Trump said U.S. soybean sales to China will be a “main topic” when he meets with Chinese leader Xi Jinping in late October was a psychological boost for the soybean futures market bulls.

A move in January soybean futures above chart resistance at this week’s high of $10.43 1/2 would give the bulls more power and it would also become a buying opportunity. The upside price objective would be $11.00 or above. Technical support, for which to place a protective sell stop just below, is located at $10.20. 

www.barchart.com

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%): 

Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.