July soybean meal (ZMN26) futures present a buying opportunity on more price strength.
See on the daily bar chart for July soybean meal futures that prices are in a choppy, up-trending channel and that last week’s low appears to be the latest “reaction low” in that channel. That suggests prices will trade sideways to higher in the near term.
Fundamentally, the U.S. soybean crush has been strong in recent months, which is bullish for meal. Also, spreaders who have been long soybean oil (ZLN26) and short meal will have to start unwinding those spreads, which should boost meal prices.
A move in the July soybean meal futures above chart resistance at $324.00 would give the bulls more strength and it would also become a buying opportunity. The upside price objective would be $342.00 or above. Technical support, for which to place a protective sell stop just below, is located at $317.00.
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.
On the date of publication, Jim Wyckoff did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
/Quantum%20Computing/A%20concept%20image%20of%20a%20green%20and%20yellow%20motherboard_%20Image%20by%20Gorodenkoff%20via%20Shutterstock_.jpg)
/Tesla%20Inc%20logo%20by-%20baileystock%20via%20iStock.jpg)
/Intel%20Corp_%20badge%20holder-by%20hasrul_rais%20via%20Shutterstock.jpg)
/Advanced%20Micro%20Devices%20Inc_%20office%20sign-by%20Poetra_RH%20via%20Shutterstock.jpg)
/Super%20Micro%20Computer%20Inc%20logo%20on%20building-by%20Poetra_RH%20via%20Shutterstock.jpg)