soybeans on the move

I am Stephen Davis, senior market strategist at Walsh Trading, Inc., Chicago, Illinois. You can reach me at 312-878-2391.

Yesterday, July 2026 soybean futures rallied. Today, they went down. In my opinion, the bulls are in control. The technicals in the chart below, steady strength and the possibility of China beginning to buy U.S. soybeans again are significant factors. 

The planned summit between President Donald Trump and Chinese President Xi Jinping on May 14-15 reportedly aims to stabilize relations between the United States and China. Among the anticipated outcomes mentioned in a China-US Focus article is a pledge by China to make large purchases of U.S. soybeans and other agricultural products. 

Another positive sign was that Soybean Open Interest (OI) increased by about 36,000 contracts yesterday. Soybean OI refers to the number of soybean futures positions that remain open and unsettled in the derivatives market. 

In my opinion, the trend for soybean July 2026 futures is higher and we are going to see more buying. 

A trade strategy is to buy July 2026 soybeans at 1201.0. Yesterday's low was 1202¼. In my opinion, markets like even numbers so put your order in at 1201.0. Risk the trade at 1191.0 stop, good til canceled. That's a $500 risk on each contract. Profit objective is 1251.0. per contract. With this trade, you are risking $500 to make $2500 per contract.

To discuss trading strategies, contact me anytime. Have an excellent day. 

Stephen Davis
Senior Market Strategist 
Walsh Trading

Direct 312 878 2391 
Toll Free 800 556 9411
sdavis@walshtrading.com  
www.walshtrading.com

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