Soybean meal shows short-term momentum

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

The first chart below is a four-hour March 2026 soybean meal chart. It shows short-term momentum and a short-term trend to trade higher. The next chart is a monthly chart of March 2026 soybean meal. Notice three months of lower highs and lower lows, which is an indication of support for soybean meal, in my opinion. 

Argentina, a major player in the world soybean market, is experiencing variable weather conditions that could affect crop production in the country's southern region. Soybeans in Argentina are typically harvested from late March to June, depending on planting dates and weather conditions. 

A trade strategy is to buy March 2026 soybean meal at 298.0 (settlement today, January 6, was 299.5). Risk the trade to 292.0 stop, good till cancelled (GTC). That's a $600.00 risk on each contract. Profit objective is 310.0. That's a $1,200.00 profit on each contract. 

An option trade strategy is to sell two March 2026 soybean meal 290.0 puts at $3.00 or better (settlement was 2.95 today, January 6). With that premium in your account, buy March 2026 soybean meal 300.0 call at 6.65. The puts you sell will just about pay for the call you buy. 

Look for soybean meal to reach higher prices in the weeks ahead, in my opinion. 

To discuss trading strategies, contact me anytime. Have an excellent day and healthy, prosperous new year. 

Stephen Davis
Senior Market Strategist 
Walsh Trading, Inc.

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

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