Soybean Meal Prices Are Starting to Catch Up Amid Inflation Fears, Food Shortages. How to Trade Them Here.

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  dropped down to chart support at the bottom of a well-defined uptrending channel and then rebounded. That suggests more upside in the near term. Soybean meal has been a laggard compared to soybeans (ZSN26) and soybean oil (ZLN26), and my bias is that meal will play catch-up in the near term.

Fundamentally, the marketplace is sensing that global inflation is on the rise and there may be impending global food shortages. The mainstream media is starting to report more on this matter. Also, domestic demand for soybean meal remains solid.

A move in July meal futures prices above chart resistance at $325.00 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 $318.00.

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.