Soybean Meal Hits 11 Week High

Soybean Meal Futures---Soybean meal futures in the December contract settled last Friday in Chicago at 303 while currently trading at 311 as prices have now hit an 11 week high continuing its bullish momentum.

Fundamentally speaking NASS slashed their projected 2019 US soybean yield by 1 bpa to 46.9 bpa as that helped their production estimate to fall 83 mbu from last months report to 3,550 billion bushels helping lower carryover from 18/19 and a cut to production, 19/20 ending stocks were down 180 mbu from last report at 460 mbu as last years stocks estimate was nearly double that at 913 million.

I have been recommending a bullish position from around the 306 level and if you took that trade continue to place the stop loss under the contract low which stands at 291 as an exit strategy as this market certainly has turned bullish as the fundamental situation has changed dramatically so stay long and continue to place the proper stop loss.

The volatility should start to increase as prices are now trading above their 20 and 100 day moving average as this trend is higher in my opinion as a possible trade agreement with China could be at hand this afternoon as that would be a very bullish fundamental factor in next week's trade.

TREND: HIGHER

CHART STRUCTURE: IMPROVING

VOLATILITY: INCREASING

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