Soybean meal futures looking for support

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

Yesterday, soybean futures sold off at the lowest limit in three years. The market bounced back somewhat this morning following the President Trump's request for a delay of his meeting with China's President Xi Jinping. The meeting, now scheduled for March 31 - April 2,  is expected to navigate the uncertain trade relationship between the U.S. and China, address tensions around tariffs, and discuss broader issues affecting their bilateral relations, including economic cooperation and stability. 

According to a Truth Social post last month by President Trump, China was considering "lifting the Soybean count to 20 Million Tons for the current season." This is 8 million additional tons over the 12 million agreed upon last year. This may or may not happen. In my opinion, markets do not like uncertainty and volatility is likely to remain high until the conclusion of the Trump-Xi meeting.

Looking at soybean meal on the chart below, we see three days of lower highs and lower lows. Today's low is slightly above the 200-day moving average, indicating good support in my opinion. A trade strategy is to buy May 2026 soybean meal at today's low, 307.60. Risk the trade to 302.50 stop. Projective objective is 319.60 limit. Per contract, that's a $500 risk for a $1,200 reward. Have these in as good til cancelled (GTC) orders. 

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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