The soybean meal story continues

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

Soybean meal is once again on my radar. One week ago November 2026 soybean gapped higher and traded to the upside and is now back and filling. I really like the way it got into the gap area on the chart below. This is what markets do, in my opinion.They gap higher, fill, and continue up. In my opinion, the $12.00 area should hold or a larger decline could follow. 

In the United States Department of Agriculture (USDA) Crop Progress report released yesterday, the National Agricultural Statistics Service (NASS) estimated that 63% of soybeans that had emerged were in good-to-excellent condition, 3 points below the previous week of 66% and 7 points below the previous year of 70%. The report notes that soybeans blooming was at 80%, 6 percentage points ahead of last year and ahead of the five-year average of 74%. Soybeans setting pods were estimated at 47%, 8 percentage points ahead of last year and ahead of the five-year average of 39%.

The second chart is the daily September 2026 soybean meal chart. Notice how the price is above the 200-day moving average. I like to buy 2026 September soybean meal at a price near the 200-day moving average.

A trade strategy is to buy September 2026 soybean meal at 318.00, good til cancelled (GTC). Risk the trade, sell September 2026 soybean meal at 313.00 stop, GTC ($500 risk per contract). Profit objective is to sell September 2026 soybean meal at 328.00, GTC. Profit potential is $1,000 per contract.

An option strategy is to buy September 2026 soybean meal 325 call at 5.70 ($570.00) per contract. I like to buy options out of the money and get them in the money. With this option strategy, you have that opportunity, in my opinion. 

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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