Soybean Meal Futures---Soybean meal futures in the December contract settled last Friday in Chicago at 301.5 while currently trading at 296.0 down over 500 points for the trading week still stuck in a very tight 7-week consolidation pattern looking to break out on some fresh fundamental news.
I am keeping a close eye on a possible bullish position if prices break the 305 level while then placing the stop loss under the contract low on May 13th at 291 as the risk would be around $1,400 per contract plus slippage and commission.
The next crop report won't be released until mid-October as that certainly will send some volatility into this market as there are still wide variances on what the soybean production number will be as I think a bottoming pattern is at hand.
Soybean meal is trading right at its 20-day but still below their 100 day moving average standing at the 309 area & if you have followed any of my previous blogs you understand that my consolidation rule states that the longer the consolidation the more powerful the breakout and I think that situation will occur here in the coming weeks ahead so look to play this to the upside.
CHART STRUCTURE: EXCELLENT
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