It was long time never this low. In 2008 when the market collapsed it was just a bit shorter.
In my opinion it will go up safely until 1000 mark because market love that kind of full numbers.
Risk to Reward is excellent also the market did a retrace from the bottom level indicating that the buyers are now in control.
Soybeans are offering a short premium opportunity as price perhaps starts making a bit of a floor. I have sold a straddle at 840 w/ 45 DTE for a maximum profit of $2500. A few things made this an attractive trade such as the high implied volatility and price having reached a key support level where I hope price stays buoyed while I run out the clock and collect...
Keep an eye on this extraordinary extreme in the soy crush spread. This spread includes 3 futures: soybeans, soybean oil and soybean meal and to be exactly now it is time to sell this spread!
What do you need to do to sell this spread?
To sell this spread you have to make 3 transactions:
BUY 1 soybeans contract
SELL 1 soybean oil contract
SELL 1 soybean meal...
....multi years low for many... extremely oversold across the complex!
JUST A TRADE TO KEEP AN EYE ON...
I am not an expert in these ones, but the trade war has potential for more destruction,
even, there is important votes for Trump midterm in it (farmers)... any surprise can come up from the hat!
...but we also entering the new crop season.
With this crazy...
This very interesting soybean crush spread is very close to its extremes and we think it is a good idea to short this spread. To do this, you need to buy 1 contract in soybean meal, 1 contract in soybean oil and buy 1 contract of soybeans. Our target is the level of 130 and we are willing to sell one more spread at the level of 180.
Watching soybean futures now, with a bullish bais at this time. Looks like, if you look left on daily chart (a double or triple botton) is happening now. June is a cyclical time with Soybean from being bearish to going bullish for next month or two. Also, look left, specially on daily charts for support and resistance.