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Soybean Oil Futures (Dec 2022)Soybean Oil Futures (Dec 2022)Soybean Oil Futures (Dec 2022)

Soybean Oil Futures (Dec 2022)

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ZLZ2022 trade ideas

Is Soybean Oil Heating Up? Of the grains and oilseeds, soybean oil has been the clear laggard. Corn, wheat, soybeans, and even soybean meal have seen notable rallies over the course of the last 4-6 weeks. However, there are indications that may soon change. As ingredient buyers know, soybean oil typically trades at a significant premium to its rival palm oil. The chart below overlays a 5-year continuous chart of front month soybean oil futures prices along with a 5-year continuous chart of Malaysian palm oil futures. As displayed by the chart, in each instance over the past 5 years in which SBO’s premium has eroded relative to palm oil, we’ve seen soybean oil prices rally in excess of 15%. Fund Positioning : Extreme fund positioning is typically viewed as a contrary indicator. As such, managed money funds holding their largest net-short position in soybean oil futures of any point in the last 5-years adds to the bullish case in the immediate term. Per the last CFTC Commitment of Traders report, managed money was holding a net-short position of 58,748 contracts. In the instance that prices grind higher, short-covering on behalf of managed money could accelerate a move to the upside. Technicals : Lastly, the technical landscape of soybean oil also looks constructive. There is significant bullish divergence between the two most recent lows, and a standard 14-day RSI. In other words, the most recent successive lows came on less conviction. A break and close above the most recent swing high of 50 should lay the groundwork for a test of the swing-highs observed last July between 64 and 66. Futures trading involves substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results. Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition. With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third party application. Blue Line Futures employees use only firm authorized email addresses and phone numbers. If you are contacted by any person and want to confirm identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500 Performance Disclaimer Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.
CBOT:ZL1!Long
by Blue_Line_Futures
CBOT soybeans set one-month low under pressure from firm dollarChicago Board of Trade soybean futures ended weaker on Tuesday after touching a one-month low as strength in the dollar weighed on grain markets. CBOT May soybeans SK24 settled down 13-1/4 cents at $11.45 per bushel and hit their lowest price since March 6. CBOT May soymeal SMK24 ended down $3.20 at $335.30 per short ton, and May soyoil BOK24 dropped 0.56 cent to finish at 44.91 cents per pound. The United States continues to face competition for global soybean export sales from cheaper Brazilian supplies.
CBOT:ZL1!Long
by Khairil_Anuar
a Pullback Rally or Continue Its Decline without correction?As we can see, soybean oil closed at the level of 49.17 and has made a lower low compared to the previous low. So, my expectation is that the price will continue its downward trend until it reaches the daily support level around 47.50 . However, Before this decline occurs, I anticipate a pullback in price, possibly rising to the price zone of 50.91 or even reaching 51.00 before experiencing a decline to the 47.50 level, as mentioned earlier. In any case, you need to ensure proper risk management and consider micro and macroeconomic fundamentals when participating in this market movement.
CBOT:ZL1!Short
by revotraders
Will soy reach a price of 53.49?As you can see, this increase is temporary in nature because the overall trend is still in a downtrend. So, my expectation for now is that soy prices will climb until they reach the daily resistance zone around 53.50 (as indicated by the red box drawn). It is anticipated that the price will experience a decline upon reaching this level because this zone can be considered quite strong since it hasn't been touched yet. This decline is supported by the fact that soy prices have broken the previous low of 52.08 and are expected to drop to the daily support zone around 50.47 to 50.17.
CBOT:ZL1!
by revotraders
4
ZLF2023 - SOYBEAN OIL JANUARY 2023Elliot waves impulsive forecast trial I use fib time & trend to predict waves time & price lengths. Despite this Monday 28th Nov bull opening, I still beleive wave 2 shall find a lower price by end of the session and shall price the low most probably druing overnight session before starting wave 3 tomorro tuesday 29thof Nov. If I am wrong, wave 2 was finished when touhed 70.27,meanign wave 3 started. Iwoudl update graph tomorrow This NOT a trading advice and my first publication. pls be good..
CBOT:ZLF2023Long
by P314159
A technical overview of Soybean Oil Since our last analysis of Soybean Oil, the commodity has completed its head and shoulders pattern, now trading at the resistance formed by the previous neckline. Concurrently, we observe an RSI divergence, where the RSI prints lower highs while the prices chart higher highs. This divergence is generally viewed as a bearish indicator, hinting at possible price declines. When paired with decreasing volume, the case for price exhaustion at this juncture becomes more compelling. The Price & Volume Profile chart serves as another essential tool in pinpointing critical zones. The highlighted POC (‘point of control’) zone represents the price level with the highest frequency of trades. Historically, this has acted as a pivotal support and resistance level for Soybean Oil, demarcating regions of consolidation before prices venture either upwards or downwards. The chart also highlights the volume traded at the different levels as denoted by the volume number at the different price levels. Notably, the current price level showcases a significant volume zone, with the largest volume transacted there. Looking at the 50 & 200-day moving averages we observe a golden cross which signifies bullishness. But not on the 100 & 200-day moving averages. On a relative value basis, we can also compare Soybean Oil to its substitute, such as crude palm oil. Here we see 2 defined regimes pre-2021 and post-2021 where the ratio of the two products significantly increased, suggesting that Soybean Oil became relatively pricier than Crude Palm Oil. We have previously delved into this topic in our article “ Fading the Soybean Oil Premium ” where we anticipated a decline in this ratio. Subsequently, this ratio did correct to the 0.06 mark, only to experience a rapid rebound. This surge was attributed to Soybean Oil appreciating at a faster rate than Crude Palm Oil. Another metric involves contrasting Soybean Oil with its upstream and downstream derivatives: Soybean and Soybean Meal. Once more, we see prices tending to move in tandem until 2021, after which the ratio of Soybean Oil to both Soybean Meal and Soybean underwent a marked shift. With the ratio's support distinctly outlined by pre-2021 resistance, this ratio can be wielded as a metric to identify when Soybean Oil is relatively overpriced compared to its up and downstream products. In conclusion, a blend of technical indicators seems to point towards more downside for Soybean Oil, such as the RSI divergence and declining volume. Also, prices stuck in the POC have generally preceded breakouts and on a relative value basis, Soybean Oil seems over-extended. We can express this bearish view on soybean oil via a short position on the CME soybean Oil futures at the current level of 63.29, with a stop at 67.50 and take profit at 51.00. Prices are quoted in cents per pound and each $0.0001 increment per pound in the Soybean Oil futures contract is equal to 6.00$. The charts above were generated using CME’s Real-Time data available on TradingView. Inspirante Trading Solutions is subscribed to both TradingView Premium and CME Real-time Market Data which allows us to identify trading set-ups in real-time and express our market opinions. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com Disclaimer: The contents in this Idea are intended for information purpose only and do not constitute investment recommendation or advice. Nor are they used to promote any specific products or services. They serve as an integral part of a case study to demonstrate fundamental concepts in risk management under given market scenarios. A full version of the disclaimer is available in our profile description. Reference: www.cmegroup.com
CBOT:ZL1!Short
by inspirante