Soybean Meal Hits 10 Week High On Weather Concerns
Michael Seery of Seery Futures - InsideFutures.com - Wed Oct 09, 7:07AM CDT

Soybean Meal Futures---Soybean meal futures in the December contract is trading higher by $3 a ton at 309.9 hitting a 10 week high as this market looks to move higher in my opinion.

The fundamental situation has changed as roughly 21% of the U.S planted soybean acreage for 2019 is in the Dakotas and MN, with some areas expected to see 8-16 inches of snow. Any crop losses will likely be reflected in the November Crop Production report. Ahead of Thursdays WASDE report traders are expecting a slight yield (0.6 bpa) reduction from USDAs September projection to 47.3 bpa as production estimates are seen dropping 50 million bushels from last month to 3.583 billion bushels.

I have been recommending a bullish position from around the 306 level and if you took that trade continue to place the stop-loss at the contract low standing at 291, however the chart structure will improve in next week's trade therefor the monetary risk will also be reduced.

Soybean meal is trading above its 20 and 100 day moving average riding the coattails of soybeans with the next major level of resistance is all the way at the 320 level so stay long as the grain market looks bullish for the 1st time months.

TREND: HIGHER

CHART STRUCTURE: IMPROVING

VOLATILITY: INCREASING

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