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ZS1! trade ideas

Where is the bottom for soybeans? Soybean futures are off to a rough start in 2024. In the first week of trading, March soybeans were down nearly 42 cents on the back of beneficial rains sweeping Central Brazil. Selling pressure permeated into Monday’s session as well, with soybeans trading down into the mid 1230’s. So, the question now becomes, will March soybeans make new contract lows? Fundamental Snapshot : Monday’s lower price action is not all that surprising considering U.S. export inspections for soybeans were reported at 675k metric tons - below average trade estimates. Meanwhile, Brazil has been exporting both corn and soybeans at record paces each of the past two years, and is expected to have a record or near-record soybean crop this year as well. Wednesday, CONAB will release data pertaining to their estimations of corn and soybeans. Currently, they are less optimistic about the state of the Brazilian soybean crop than the USDA, and USDA will release their World Agricultural Supply and Demand Expectations report on Friday. If we see sweeping downward adjustments to production estimates from both CONAB and USDA, it may help soybeans find a bottom. However, if the market is disappointed in the data released this week, we may see soybeans test 1200 sooner rather than later. Technical Outlook : After last week’s precipitous drop, it was surprising that March beans failed to enter oversold territory. However, it did not take long to break into OS territory on Monday’s session. The head-and-shoulders pattern that’s developed over the past fiscal quarter has a difference of approximately $1.20/bu, which puts an operative price target between 1198 and 1208. That also happens to be the 78.6% retracement level between the mid-June lows and late-July highs. Markets can stay in overbought/oversold territory for extended periods of time, so if data disappoints this week, we may see the head-and-shoulders reach its price target. However, a positive reception to fundamental data this week may serve as a launching pad for soybeans to start moving higher. Check out CME Group real-time data plans available on TradingView here: www.tradingview.com Disclaimers: CME Real-time Market Data help identify trading set-ups and express my market views. 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 *Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services. Futures trading involves substantial risk of loss and may not be suitable for all investors. 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.
CBOT:ZSH2024
by Blue_Line_Futures
Bullish on Soybean FuturesIn the Soybean futures market, a stabilization trend is evident. Several indicators suggest that this bottoming process appears to be sustainable. When considering the price in relation to standard deviations, it becomes apparent that the current price is within the range of its mean. Given the presence of a concealed yet distinctly bullish On-Balance Volume (OBV) divergence, there is a reasonable expectation that the Soybean futures will soon ascend to the 1430 level, coinciding with a Buyside Liquidity zone. For these reasons, we maintain a bullish outlook on Soybean futures. The outlined trade idea is presented as a suggestion for a specific trade with a Risk-Reward Ratio (RRR) exceeding 2.0:1.
CBOT:ZS1!Long
by Ochlokrat
🌱 Soybean Update 🆕Fundamental Data👇 🌱Soybean Marketing Year Progress (23/24) ▓▓▓▓░░░░░░░░░░░ 27.62% Export Inspections 🚢➡️🌎 1,108,864 Metric Tons ⬇️ 464,425 Metric Tons week vs. last week ⬇️ 1,120,580 Metric Tons this week vs. this week last year ⬇️ 800,246 Metric Tons this week vs. 5-Year Average This Week Export Sales🗺️🫰 32,399,826 Metric Tons (Cumulative, Current Marketing Year) ⬇️ 4,898,256 Metric Tons this week vs. this week last year Price Sentiment (Community Polling)📊 Bullish 🟩🟩🟩⬜️⬜️⬜️⬜️⬜️⬜️⬜️ 24% Neutral 🟫🟫🟫⬜️⬜️⬜️⬜️⬜️⬜️⬜️ 27% Bearish 🟥🟥🟥🟥🟥⬜️⬜️⬜️⬜️⬜️ 44% Fund Net Position💰 Chicago Soybeans: +36,633 Contracts (Position as of 12/05) Funds have been reducing their net long position 3 weeks in a row Noteworthy News / Trends 🆕 🔴 Funds have been reducing their net long position, 3 weeks in a row 🔴/🟢 Export interest for US Soybeans is considerably weak in comparison to previous marketing years, but has improved recently 🔴 The spread between January-March futures continues to show weakness (carry is not bullish) 🟢 Brazilian Soybean production decreased to 161 MMT (USDA) and 160.177 MMT (CONAB) Commentary & Technicals💹 *None this week* Watch the following levels 👇 🟢 Upside Targets: 13.51, 13.89, 13.98 🔴 Downside Targets: 12.92, 12.705, 12.66 Investment Risk Disclaimer⚠️ This information is provided for informational and educational purposes only and is not intended to constitute investment, financial, legal, tax or accounting advice. The views expressed are those of the author and do not necessarily represent the opinions or advice of our firm. Futures, options, and over-the-counter derivatives involve a high degree of risk and may not be suitable for all investors. Past performance is not indicative of future results. Investments or strategies mentioned herein may not be suitable for you. The information contained herein does not take into account the particular investment objectives, financial situations, or needs of individual users. Before making any investment decision, you should perform due diligence and consider seeking advice from an independent financial or investment advisor. All investments involve risk, including the possible loss of principal. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. We do not guarantee any outcomes regarding your use of the information provided.
CBOT:ZSF2024
by GrainStats
Solid Brazilian Rains Dampen Soybean PricesSoybean prices have been on a rollercoaster fuelled by turbulence over the last month amid elevated weather concerns, changing production yields, and geopolitical upheavals affecting prices. Winters are vital for bean traders. This paper delves into the various forces at play to guide traders and portfolio managers to navigate through the rough weather. Favourable weather combined tail winds for Soybean harvests plus weakness in destination markets are setting the ground for bearishness in bean prices. A short position in CME Soybean futures can be used to manage risk. US SOYBEAN HARVEST RESULTS Soybean harvest in the US has concluded providing a more certain supply outlook for the ongoing marketing year. Next Soybean harvest will take place in March-June in South America. Until then, current inventories will have to meet the demand. As per USDA update , Soy harvesting in the US is 90% complete. Yields for the 2023/2024 marketing year were updated to 49.9 bushels/acre in the November WASDE report compared to 49.6 bushels/acre in the October report. This resulted in an upward revision to the production and ending stocks figures as well since the consumption forecast remained unchanged. A similar update was reported by USDA in the global soybean outlook which suggested that global soybean production would be marginally higher. Despite the upward revisions, the US production figures represent a YoY decline of 4 million MT (-3.3%). The upward revision then, provides a larger buffer to account for potentially higher consumption. This is vital because bean inventory balances in the US this year are tighter than the previous two years. US Ending stocks are forecast to be 6.68 million MT compared to 7.3 million MT last year. As a result, although the upward revision expanded the buffer, it is quite narrow which could exacerbate a shortage in case consumption edges higher. SEASONAL TRENDS As highlighted by Mint in a previous paper , seasonal trends in Soybean futures are affected by harvest. During harvest, prices decline before recovering post-harvest as inventories are depleted. However, the seasonal trend is distinct during El Niño years where returns underperform the usual average, especially in December-January. BRAZIL WEATHER CONCERNS LIFTED Soybean markets are heavily influenced by weather in Brazil. Hotter than expected weather and erratic precipitation raised concerns for Brazilian crops which drove Soybean prices higher over the past month. Brazil experienced a strong heat wave last month which has a negative effect on crops. Weather effects on crop yields are most pronounced during the early stages of growth. However, weather is now set to improve as weather forecasts suggest the arrival of rains and milder temperatures ahead. Both are positive for the bean crop. Still, higher-than-expected precipitation remains a concern for the crop. As highlighted by University of Delaware , too much rainfall during the planting stage can lead to significant yield reduction. Source: USDA Brazil is the largest producer of Soybean and its harvest had been expanding rapidly over the past three years. This had previously led to oversupply concerns in global markets, exacerbated by a low demand environment in the largest soybean consumer China. Though consumption in China is forecast to increase YoY, it will not be enough to match the increase in global production (especially in Brazil) per the latest WASDE estimates . Net effect is larger ending stocks globally which is bearish for Soybean prices. EL NIÑO UPDATE In this El Niño year, unexpected weather pose significant concerns as it deviates from the anticipated impact on soybean crops outlined in our previous paper . While El Niño typically brings favourable conditions, such as increased rainfall and mild weather leading to a 3.5% higher soybean yield on average. Brazil is experiencing unexpectedly warm weather and low precipitation, diverging from the usual patterns. The unpredictability of these conditions amplifies their potential impact on prices compared to previously expected El Niño effects. Source - NOAA El Niño continues to evolve adversely as Oceanic Niño Index (ONI) has reached its highest level since 2016. Sea Surface Temperatures (SST) at Niño 3.4 is another indicator that has reached an all-time-high. Source - NOAA SIGNAL FROM SOYBEAN FUTURES MARKET Technical signals suggest a bearish trend in bean futures. Front month bean contract was on an upward trend since mid-October. The front month contract tested but failed to pass a key pivot resistance level of 1,381 USc/bushel. Price has since declined 5% and points to a reversal as the Moving Averages close to forming a bearish crossover. Asset managers switched from net short to net long positioning over the past month. However, over the last 2 weeks, asset managers have reduced net long positioning by 20k contracts. Options markets point to bearishness as participants are positioned for Soybean price to decline with a P/C ratio of 1.31 which suggests more bearish bets than bullish ones. Further, bearish bets have increased sharply over the past week with the largest increase in puts on the April monthly contract and December monthly contract. Moreover, participants have reduced call OI on the front-month December contract. HYPOTHETICAL TRADE SETUP With the overhang of negative weather in Brazil lifted, bean prices are likely to decline and pare gains from the past month due to a weak demand environment. Market metrics also suggest a bearish trend. To gain exposure, investors can deploy a short position on Soybean futures expiring in Feb ( ZSH2024 ). CME Soybean futures expiring in March require a maintenance margin of USD 2,800 (as of December 4th) and provide exposure to 5000 bushels. Entry: USc 1,336 Target: USc 1,272.25 Stop Loss: USc 1,381 Profit at Target: USD 3,187 Loss at Stop: USD 2,250 Reward/Risk: 1.42x MARKET DATA CME Real-time Market Data helps identify trading set-ups and express market views better. 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 This case study is for educational purposes only and does not constitute investment recommendations or advice. Nor are they used to promote any specific products, or services. Trading or investment ideas cited here are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management or trading under the market scenarios being discussed. Please read the FULL DISCLAIMER the link to which is provided in our profile description.
CBOT:ZS1!Short
by mintdotfinance
1
Soybean Update 🌱Fundamental Data👇 🌱Soybean Marketing Year Progress (23/24) ▓▓▓▓░░░░░░░░░░░ 23.76% Export Inspections 🚢➡️🌎 1,609,413 Metric Tons ⬇️ 330,666 Metric Tons week vs. last week ⬇️ 420,260 Metric Tons this week vs. last week ⬇️ 319,437 Metric Tons this week vs. 5-Year Average This Week Export Sales🗺️🫰 29,054,927 Metric Tons (Cumulative, Current Marketing Year) ⬇️ 6,928,917 Metric Tons this week vs. this week last year Price Sentiment (Community Polling)📊 Bullish 🟩🟩🟩🟩🟩⬜️⬜️⬜️⬜️⬜️ 47% Neutral 🟫🟫⬜️⬜️⬜️⬜️⬜️⬜️⬜️⬜️ 18% Bearish 🟥🟥🟥⬜️⬜️⬜️⬜️⬜️⬜️⬜️ 24% Fund Net Position💰 Chicago Soybeans: +87,913 Contracts (Position as of 11/14) Funds have been adding to their net position 5 weeks in a row (Fund position will be updated on 11/27 due to Thanksgiving holiday) Noteworthy News / Trends 🆕 🔴 Brazilian production is still seen at a record +160 million metric tons, according to analysts 🔴 Import interest into China (from US) is considerably weak, even when considering recent China purchases (+ Unknown) 🔴 The spread between January-March futures continues to widen (carry is not bullish) 🟢 5-day precipitation is mixed for Brazil - rains in the forecast in the southern states, but lack of rain in the northern growing regions 🟢/🔴 Logistics at the ports of Brazil are mounting (congestion). For US Logistics the constraint appears to be the Panama Canal which has announced a reduction of the number of ships that will be able to transit through the canal daily from 24 currently to 18 in February 2024. Fund Net Position💰 Chicago Soybeans: +87,913 Contracts (Position as of 11/14) Funds have been adding to their net position 5 weeks in a row (Fund position will be updated on 11/27 due to Thanksgiving holiday) Commentary & Technicals💹 Not much to add that has not been explained already. Watch the following levels 👇 🟢 Upside Targets: 13.78, 13.89, 13.98 🔴 Downside Targets: 13.27, 13.15, 13.00 Investment Risk Disclaimer⚠️ This information is provided for informational and educational purposes only and is not intended to constitute investment, financial, legal, tax or accounting advice. The views expressed are those of the author and do not necessarily represent the opinions or advice of our firm. Futures, options, and over-the-counter derivatives involve a high degree of risk and may not be suitable for all investors. Past performance is not indicative of future results. Investments or strategies mentioned herein may not be suitable for you. The information contained herein does not take into account the particular investment objectives, financial situations, or needs of individual users. Before making any investment decision, you should perform due diligence and consider seeking advice from an independent financial or investment advisor. All investments involve risk, including the possible loss of principal. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. We do not guarantee any outcomes regarding your use of the information provided.
CBOT:ZSF2024
by GrainStats
🌱 Soybeans - 🔥Brazil and Argentina 💵Fundamental Data👇 🌱Soybean Marketing Year Progress (23/24) ▓▓▓░░░░░░░░░░░░ 21.77% Soybean Harvest Progress 🚜➡️🌱 ▓▓▓▓▓▓▓▓▓▓▓▓▓▓░ 95% Export Inspections 🚢➡️🌎 1,666,467 Metric Tons ⬇️ 516,368 Metric Tons week vs. last week ⬇️ 941,965 Metric Tons this week vs. last week ⬇️ 549,183 Metric Tons this week vs. 5-Year Average This Week Export Sales🗺️🫰 28,159,427 Metric Tons (Cumulative, Current Marketing Year) ⬇️ 4,933,183 Metric Tons this week vs. this week last year Price Sentiment (Community Polling)📊 Bullish 🟩🟩🟩🟩🟩🟩⬜️⬜️⬜️⬜️ 52% Neutral 🟫🟫🟫⬜️⬜️⬜️⬜️⬜️⬜️⬜️ 28% Bearish 🟥🟥⬜️⬜️⬜️⬜️⬜️⬜️⬜️⬜️ 13% Noteworthy News / Trends 🆕 🟢 Brazilian Soybean crop continues to suffer through drought and heat stress conditions. Some of the crop is even being replanted as Cotton. (check our Twitter for more info) 🟢 Precipitation in Brazil is well below normal from a low of 13% of normal to a high of 70%, with most around the 30-40% range as far as November precipitation is concerned. 🟢 Funds have been adding to their net long position for five weeks in a row. 🟢 US Crush margins continue to show strength 🟢 The US had the largest weekly sales of Soybeans in +10 years 🟢/🔴 Logistics at the ports of Brazil are mounting (congestion). For US Logistics the constraint appears to be the Panama Canal which has announced a reduction of the number of ships that will be able to transit through the canal daily from 24 currently to 18 in February 2024. 🟢/🔴 It’s too early to tell what happens with the Argentine elections, but one could assume that Milei winning would be bearish Soybeans as he vows to dollarize the economy. This would pave the way for Argentine farmers to sell their grain for Dollars instead of the hyperinflated Argentine Peso. (Basically the market will not encourage hoarding of grain off the market anymore) 🟢/🔴 5 Day forecast is calling for rains in Brazil in key areas that need the rain the most. Will they hit? That’s TBD. Fund Net Position💰 Chicago Soybeans: +87,913 Contracts (Position as of 11/14) Funds have been adding to their net position 5 weeks in a row Commentary & Technicals💹 All attention in the grain and oilseed markets continues to be pointing to two things in South America. 1. The ongoing heat and lack of rain in Brazil affecting Soybean production 🔥 2.The presidential race in Argentina which could structurally shift everything in the Argentine economy IF Javier Milei wins 💵 These all come at a time when the US farmer will largely remain absent completing harvest as well as taking much needed time off during Thanksgiving. We believe then based on the above that we may experience heightened volatility and lessening liquidity as we start pricing in which portion of the matrix becomes the most probabilistic outcome (Rain/Drought, Javier Wins/Loses). Watch the following levels 👇 🟢 Upside Targets: 13.62, 13.87, 13.98 🔴 Downside Targets: 13.36, 13.14, 13.00 Investment Risk Disclaimer⚠️ This information is provided for informational and educational purposes only and is not intended to constitute investment, financial, legal, tax or accounting advice. The views expressed are those of the author and do not necessarily represent the opinions or advice of our firm. Futures, options, and over-the-counter derivatives involve a high degree of risk and may not be suitable for all investors. Past performance is not indicative of future results. Investments or strategies mentioned herein may not be suitable for you. The information contained herein does not take into account the particular investment objectives, financial situations, or needs of individual users. Before making any investment decision, you should perform due diligence and consider seeking advice from an independent financial or investment advisor. All investments involve risk, including the possible loss of principal. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. We do not guarantee any outcomes regarding your use of the information provided.
CBOT:ZSF2024
by GrainStats
Soybean Update 🔥🌱Fundamental Data👇 🌽Soybean Marketing Year Progress (23/24) ▓▓▓░░░░░░░░░░░░ 20.53% Soybean Harvest Progress 🚜➡️🌱 ▓▓▓▓▓▓▓▓▓▓▓▓▓▓░ 95% Export Inspections 🚢➡️🌎 1,666,467 Metric Tons ⬇️ 516,368 Metric Tons week vs. last week ⬇️ 941,965 Metric Tons this week vs. last week ⬇️ 549,183 Metric Tons this week vs. 5-Year Average This Week Export Sales🗺️🫰 24,241,071 Metric Tons (Cumulative, Current Marketing Year) ⬇️ 8,056,733 Metric Tons this week vs. this week last year 🤯 (these statistics do not include recent Chinese purchases totaling over 2 million metric tons) Price Sentiment (Community Polling)📊 Bullish 🟩🟩🟩🟩🟩⬜️⬜️⬜️⬜️⬜️ 46% Neutral 🟫🟫⬜️⬜️⬜️⬜️⬜️⬜️⬜️⬜️ 19% Bearish 🟥🟥🟥⬜️⬜️⬜️⬜️⬜️⬜️⬜️ 29% Noteworthy News / Trends 🆕 🔴 USDA Raised ending stock estimates by 25 million bushels (245 million bushels ending stocks) and production by 3/10 of a bushel (49.9 bpa) for the 2023 crop. 🔴 USDA Raised ending stocks of Brazilian Soybeans by 2 million metric tons ( all time high ) 🔴 Drought is receding in the US, but several pockets remain (more important for 2024) 🔴 Panama Canal congestion continues to plague logistics increasing freight costs to navigate through the Panama Canal (most of US Soybeans are exported through the US Gulf and pending destination, may need to use the Panama Canal to get to market) 🔴 Mississippi river levels have receded again and likely will have an impact on shipping costs (Freight up, Basis down) 🟢 China is back in the market for Soybeans buying +2.8 million metric tons, just last week (assuming “unknown” sales are China) 🟢 Soybean meal continues to rally approaching highs not seen since March of this past year 🟢 Brazilian crop continues to suffer through drought and heat stress conditions (check our Twitter for more info) 🟢 Funds continue to add to their net long position Fund Net Position💰 Chicago Soybeans: +68,598 Contracts (Position as of 11/07) Commentary & Technicals💹 Technically speaking, Soybeans broke through the earlier resistance we mentioned last week and settled above it, opening the door for the psychological $14.00 handle. We note this week that the market is mainly being driven by events unfolding in Brazil (drought) and Argentina (Elections & Soybean scarcity). One of which can turn suddenly (weather) and the other is driven by both the political uncertainty in Argentina coupled with Soybean scarcity. All of which could lead to volatile outcomes in the next 2 weeks while the US is out celebrating Thanksgiving. Watch the following levels 👇 🟢 Upside Targets: 13.98, 14.00, 14.20 🔴 Downside Targets: 13.68, 13.60, 13.36 Investment Risk Disclaimer⚠️ This information is provided for informational and educational purposes only and is not intended to constitute investment, financial, legal, tax or accounting advice. The views expressed are those of the author and do not necessarily represent the opinions or advice of our firm. Futures, options, and over-the-counter derivatives involve a high degree of risk and may not be suitable for all investors. Past performance is not indicative of future results. Investments or strategies mentioned herein may not be suitable for you. The information contained herein does not take into account the particular investment objectives, financial situations, or needs of individual users. Before making any investment decision, you should perform due diligence and consider seeking advice from an independent financial or investment advisor. All investments involve risk, including the possible loss of principal. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. We do not guarantee any outcomes regarding your use of the information provided.
CBOT:ZSF2024
by GrainStats
🌱 Soybeans Going Into Holiday Mode (GrainStats)Fundamental Data👇 Soybean Harvest Progress 🚜➡️🌱 ▓▓▓▓▓▓▓▓▓▓▓▓▓░░ 91% Export Inspections 🚢➡️🌎 2,085,419 Metric Tons ⬇️ 35,012 Metric Tons week vs. last week ⬇️ 500,809 Metric Tons this week vs. this week last year Export Sales🗺️ 24,241,071 Metric Tons (Cumulative, Current Marketing Year) ⬇️ 8,056,733 Metric Tons this week vs. this week last year 🤯 Price Sentiment (Community Polling)📊 Bullish 🟩🟩🟩🟩🟩⬜️⬜️⬜️⬜️⬜️ 46% Neutral 🟫🟫⬜️⬜️⬜️⬜️⬜️⬜️⬜️⬜️ 19% Bearish 🟥🟥🟥⬜️⬜️⬜️⬜️⬜️⬜️⬜️ 29% Noteworthy News / Trends 🆕 🟢 *Huge* export sales this week purchased by China 🟢 US Barge freight has gone down 6 weeks in a row from 1,326% of tariff to 467% of tariff 🔴 CONAB raised Brazil's forecast for Soybean output to 162.42 million metric tons (even in light of the problems with the planting of the crop) 🔴 USDA raised yield forecasts for US crop by 3/10 of a bushel and increased carryout by 25 million bushels 🔴 Panama Canal water level has caused congestion and increased shipping costs as ships "jump the line" to pass through the canal. (end result = increased shipping costs) Funds💰 Funds have reversed their net short position and are long over 23 thousand contracts. (as of 10/31) Soybean Technicals 💹 Soybeans broke the down trend this week, but failed to follow through. Regardless, the price action actually has set a technical level to watch to the upside at @ 13.84, which if broken, could warrant a test of 14.20. Other than that, we do have a trend forming to the upside, the only issue is for new entrants is that we're right in the middle of the range and there is plenty of choppiness to go around. That being said, we advise caution until a clearer picture is known for position taking. What we're watching is continued buying potential from China for the next several weeks and any indication that Brazil's production estimates are to reverse. It is also notable to pay close attention to the elections in Argentina where the opposition party would "Dollarize" the economy, which in turn could lead to Argentine farmers being more relaxed with marketing decisions knowing they would revive dollars instead of the hyperinflated Argentine Peso. Watch the following levels for now👇 🟢 Upside Targets: 13.73, 13.84, 14.00 🔴 Downside Targets: 13.36, 13.10, 12.97 Investment Risk Disclaimer⚠️ This information is provided for informational and educational purposes only and is not intended to constitute investment, financial, legal, tax or accounting advice. The views expressed are those of the author and do not necessarily represent the opinions or advice of our firm. Futures, options, and over-the-counter derivatives involve a high degree of risk and may not be suitable for all investors. Past performance is not indicative of future results. Investments or strategies mentioned herein may not be suitable for you. The information contained herein does not take into account the particular investment objectives, financial situations, or needs of individual users. Before making any investment decision, you should perform due diligence and consider seeking advice from an independent financial or investment advisor. All investments involve risk, including the possible loss of principal. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. We do not guarantee any outcomes regarding your use of the information provided.
CBOT:ZSF2024
by GrainStats
2
🌱 Soybean Technical Analysis (GrainStats)Fundamental Data👇 Soybean Harvest Progress 🚜➡️🌱 ▓▓▓▓▓▓▓▓▓▓▓▓░░░ 85% Export Inspections 🚢➡️🌎 1,890,227 Metric Tons ⬇️ 735,466 Metric Tons week vs. last week 🤯 ⬇️ 1,030,191 Metric Tons this week vs. this week last year 🤯 ⬇️ 372,103 Metric Tons this week vs. 5-year average Export Sales🗺️ 23,269,073 Metric Tons (Cumulative, Current Marketing Year) ⬇️ 8,281,365 Metric Tons this week vs. this week last year 🤯 Price Sentiment (Community Polling)📊 Bullish 🟩🟩🟩🟩⬜️⬜️⬜️⬜️⬜️⬜️ 39% Neutral 🟫🟫🟫⬜️⬜️⬜️⬜️⬜️⬜️⬜️ 25% Bearish 🟥🟥🟥⬜️⬜️⬜️⬜️⬜️⬜️⬜️ 30% Noteworthy News / Trends 🆕 🟢 US River levels have improved on the Mississippi river (barge freight down 4 weeks in a row) - Positive for basis development 🟢 Harvest is nearing completion in the US (less sell side pressure from farmers) 🟢 Funds have reversed their net bearish bets on soybeans in the past 3 weeks 🔴 Export sales are dismal 🔴 Crush margins backing off 🔴/🟢 Rains forecasts are improving in Argentina, mixed in Brazil Funds💰 Funds have reversed their net short position and are long over 23 thousand contracts. Soybean Technicals 💹 Soybeans successfully broke out of their near term downtrend late last week which has opened the door to higher levels. We currently believe that there is potential to continue higher while also respecting the downtrend in prices since summer. We also note that Soybean futures are stuck right in the middle of the range, so we advise caution as a choppy trade is to materialize with support/resistance being set largely out of the down/up trendlines. What we're paying attention to currently is the export situation in the US being extremely dismal and looking for a bright spot. We are looking at the new crop Soybean/Corn spread which we believe will keep on pricing itself to incentivize farmers to plant more Soybeans next spring. Other than that, Argentina and Brazil soybean development is on the radar on everyone's trade desk. Expect some choppiness! Watch the following levels for now👇 🟢 Upside Targets: 13.60, 13.75, 13.83 🔴 Downside Targets: 13.26, 12.97, 12.70 Investment Risk Disclaimer⚠️ This information is provided for informational and educational purposes only and is not intended to constitute investment, financial, legal, tax or accounting advice. The views expressed are those of the author and do not necessarily represent the opinions or advice of our firm. Futures, options, and over-the-counter derivatives involve a high degree of risk and may not be suitable for all investors. Past performance is not indicative of future results. Investments or strategies mentioned herein may not be suitable for you. The information contained herein does not take into account the particular investment objectives, financial situations, or needs of individual users. Before making any investment decision, you should perform due diligence and consider seeking advice from an independent financial or investment advisor. All investments involve risk, including the possible loss of principal. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. We do not guarantee any outcomes regarding your use of the information provided.
CBOT:ZSF2024
by GrainStats
January Soybeans Test Resistance The January soybean contract closed Monday’s session rallying for the fifth day in a row - closing at the exact 61.8% retracement of the August 28th high and October 12th low. Can the contract continue to build on its recent strength? Or will this week’s World Agricultural Supply and Demand Expectations (WASDE) report cut the rally short. The Bullish Case : Uncertainty surrounding the Brazilian soybean crop has been a major catalyst for the recent strength observed in the January soybean contract. The hot, dry weather affecting the major soybean growing areas has certainly taken a toll on yields, but it may be too early to tell if the damage done has been materially significant. Thursday’s USDA report could provide a glimpse into the situation - specifically, if we see a downward adjustment to estimated South American production estimates, the rally in soybean prices can certainly continue. The Bearish Case : After the open, January soybeans topped out at 1369 ¾ - a single tick away from the upper boundary of our 3-star resistance pocket between 1360 and 1370. Failure to close above 1370 serves as a warning signal in the short-term that the rally may be waning. Moreover, after making a 1-year high in January Soybean Meal contract, prices quickly turned lower. If we see soybean meal prices correct sharply, it will likely be a boon to January soybean prices. Lastly, the USDA is slow to make adjustments - even though the weather has not been favorable in Brazil, USDA may leave South American production estimates (particularly Brazilian production estimates) unchanged. Leaving production estimates unchanged would come as a disappointment to the trade, and also push prices lower. What To Watch For : Thursday’s WASDE report is likely the largest catalyst for price action this week. In that report, demand estimates and South American production estimates are likely going to be the two largest factors. But, there are a few other things that should be monitored closely. Specifically, domestic export performance through the end of the year, and price action across the other components of the soy complex - meal and oil - will have an effect on prices in the coming weeks and months. Check out CME Group real-time data plans available on TradingView here: www.tradingview.com Disclaimers: CME Real-time Market Data help identify trading set-ups and express my market views. 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 *Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services. Futures trading involves substantial risk of loss and may not be suitable for all investors. 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.
CBOT:ZSF2024
by Blue_Line_Futures
🌱 Soybean Technical Analysis (GrainStats)Soybean Fundamentals ( CBOT:ZSF2024 ) Soybean Harvest Progress 🚜➡️🌱 ▓▓▓▓▓▓▓▓▓▓▓▓░░░ 85% Export Inspections 🚢➡️🌎 1,890,227 Metric Tons ⬇️ 735,466 Metric Tons week vs. last week ⬇️ 1,030,191 Metric Tons this week vs. this week last year ⬇️ 372,103 Metric Tons this week vs. 5-year average Export Sales 22,259,064 Metric Tons (Cumulative, Current Marketing Year) ⬇️ 8,264,993 Metric Tons this week vs. this week last year Noteworthy News / Themes 🟢 Crush margins have re-bounded significantly due to the rally in Soybean Meal 🔴 It is still notably dry in Argentina and planting should be starting in full swing 🟢 US River levels have improved on the Mississippi river (barge freight down) Soybean Technicals Overall quite the sideways market with conflicting trends - one up and one down, with an inflection point coming up soon. Regardless, from a technical point of view, there is no trade in the middle of the range until any of the following levels get breached.👇 🟢 Upside Target: 13.31 🔴 Downside Targets: 12.97, 12.70
CBOT:ZSF2024
by GrainStats
10 year Bean Projection (potentially)10yr Corn outlook: Potential course of the Bean market for the next 10 years. Previous inflationary markets have caused for the multi year market structure to step up in price ranges. Before that range is found, Beans will need to mark a pivot high enough to ration some future demand. The low found after a major high is made, could mark an area for the future multi year market structure. The market should remain very sensitive for another few years. Sensitive to world demand and production misses across the globe. There are many climate cycles coming ahead that could add to potential Ag production shortages. **Not a prediction, something to watch**
CBOT:ZS1!
by mtb1980
November Soybeans Test 1300 The November soybean contract tested 1300 per bushel on Tuesday, trading all the way up to 1303 ½, before ultimately settling at 1296 ¾. The question is now - where do we go from here? Psychologically Significant Resistance Failing to close above 1300 means we failed to close above a psychologically significant resistance level at 1300. Moreover, we’ve previously identified 3-star resistance between 1294 and 1299 ¾. Because we closed within that resistance pocket, it’s possible that we test 1300 and beyond once again in Wednesday’s trading session. But what if we don’t? If the market corrects lower on the failure to trade through resistance, where do we find support? Previous Resistance Becoming Support If we reject higher prices in tomorrow’s trade, previous resistance between 1280 and 1285 ¼ should serve as the first line of defense. Meaning, that if we see prices sell off throughout the session on Wednesday, we should expect prices to bounce back somewhere between 1280 and 1285 ¼. If we cut through 1280 rapidly, the next sufficient support pocket may factor in near the 38.2% retracement level between the May 31st and July 24th price extremes - coming in around 1249-1250. The Bottom Line We are in the midst of a pivot in the November soybean contract. Tomorrow’s price action should provide guidance on the intermediate-term’s price trajectory. Last week’s USDA report was mostly supportive of the soybean complex, and export sales have performed well over the past 6 weeks. That said, net-exports remain lower than they were at this time last year, and global demand remains deflated. Pay close attention to tomorrow’s closing prices as they may indicate the direction of the trend over the next 2-4 weeks. Check out CME Group real-time data plans available on TradingView here: www.tradingview.com Disclaimers: CME Real-time Market Data help identify trading set-ups and express my market views. 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 *Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services. Futures trading involves substantial risk of loss and may not be suitable for all investors. 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.
CBOT:ZSX2023
by Blue_Line_Futures
Near-term Bottom for Soybeans?The soybean market has been under significant selling pressure since the August highs, breaking through some strong support pockets. Looking back to January of 2022, the market started to breakout to the upside, and we are now trading right near that breakout level after holding support very well, and the market is trying to push higher to finish out this week. There is significant support below this market as mentioned, and it has held well and bounced nicely to the upside, coming in at 12.57-12.52. When looking at key support or resistance levels, it is important to note that each time a significant level is tested, that level becomes weaker and more likely to break. If this support can hold and the market can rebound, we could see a test back at 12.89, and bulls will want to chew through that level to invite more buyers. Seasonally speaking, prices are still elevated compared to past averages. With that said, Soybeans typically can see a bottom around this time of year and look to run to the upside for an end of the year rally. For this market to make a significant move higher, bulls need to see this support pocket identified above to hold and need to see prices chew through some strong resistance with conviction as we push through harvest season. Check out CME Group real-time data plans available on TradingView here: www.tradingview.com Disclaimers: CME Real-time Market Data help identify trading set-ups and express my market views. 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 *Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services. Futures trading involves substantial risk of loss and may not be suitable for all investors. 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.
CBOT:ZSX2023
by Ryan_Gorman
📈 How To Use The ADX And DI in 2 Steps 💪🔄Using the Average Directional Index (ADX) and Directional Movement Index (DI) -- in stock trading, technical analysis can help you identify the strength of a trend. -- Here's a two-step process to scan for stocks using the ADX DI indicator: -- **Step 1: Find Stocks with Strong Trends** -- 1. **Select a Stock Screener:** - Use a stock screener tool or platform that allows you to filter stocks based on technical -- indicators. Many brokerage platforms offer this feature. -- 2. **Set the ADX Filter:** - Look for stocks with a high ADX value. Typically, an ADX above 25 is considered to indicate a strong trend. -- You can adjust this threshold based on your risk tolerance and trading strategy. -- **Step 2: Confirm the Trend Direction** -- 1. **Examine the Directional Movement Indicators (DI+ and DI-):** - Within the stocks that pass the ADX filter, -- pay attention to the relationship between the DI+ (positive directional indicator) and DI- (negative directional indicator). -- - A bullish trend is indicated when DI+ is above DI- and a bearish trend is indicated when DI- is above DI+. -- 2. **Consider Crossovers and Divergences:** -- - Watch for crossovers between DI+ and DI-. A bullish signal occurs when DI+ crosses above DI-, -- and a bearish signal occurs when DI- crosses above DI+. - Look for divergences between price action and -- the DI indicators. For example, if the stock is making higher highs, but the DI+ is making lower highs, it could signal a weakening trend. -- Remember, while the ADX DI indicator can be a valuable tool, it's important to use it in conjunction -- with other technical and fundamental analysis methods for a comprehensive view of a stock's potential. -- Additionally, always consider setting stop-loss orders to manage risk. 🚫📊 **Trading Disclaimer** 🚫📊 The information provided is for educational purposes only and should not be considered -- as financial advice. Trading involves risk, and past performance does not guarantee -- future results. Always conduct thorough research and consider consulting a qualified financial -- advisor before making any investment decisions. Remember to set appropriate stop-loss levels to manage risk. -- rocket boost this content to show me your support and to learn more -- Thank you
CBOT:ZS1!Short
by lubosi
What Drives Soybean Prices: El Niño, Geopolitics, or SeasonalityEl Niño means little boy in Spanish. The fishermen in Latin America observed periods of unusually warm water in the Pacific Ocean in the 1600s around Christmas. El Niño can cause 50% variation in local weather in regions growing essential crops like beans, corn, and coffee. Soybean is a giant in global trade. It ranks among the top comprising more than 10% of the total value traded annually. Soybean is used for edible oils, biofuels, and livestock feed. This paper introduces the impact of El Niño on bean prices, geopolitical risk in beans given its idiosyncratic market structure, and seasonality. Medium to longer term impact on bean prices will be dictated by severity of weather, demand, and energy prices. However, in the near term, record Brazilian output and ongoing harvests in China, India, Russia, Ukraine, and Canada will weigh down on bean prices. To gain from weakening prices, this paper posits a hypothetical short position in CME Soybean Futures expiring in November 2023 (ZSX2023) with an entry at USc 1296/bushel combined with a target at USc 1188/bushel and hedged by a stop at USc 1368/bushel, delivering an expected reward-to-risk ratio of 1.5x. EL NIÑO IS A RECURRING CLIMATE PHENEMENON El Niño and Southern Oscillation (ENSO) is a recurring climate phenomenon which has significant global impact on precipitation and temperature. ENSO is the result of the natural cyclical interaction between equatorial sea surface temperature (SST) and the atmosphere. These interactions lead to climate fluctuations across more than 60% of the world. ENSO has a major effect on rainfall and temperature variation. In some regions, such as those closest to the tropical pacific, ENSO can result in 50% of the total variation in local weather. These regions are often the most essential for important crops like bean, corn, and coffee. These interactions oscillate between warming and cooling periods leading to the ENSO cycle plotted below. The pattern recurs every two to seven years. Notably, the frequency of the ENSO cycle and the intensity of its effects have increased over the last fifty years due to global warming. As a result, ENSO has an outsized influence on global economy given its potency of delivering shocks to agriculture. El Niño are periods of warm ocean temperatures (highlighted in red) in the Central and Eastern Equatorial Pacific regions. La Niña are periods with cooler ocean temperatures (marked in green above) in Central and Eastern Pacific zones. Periods with no major deviation from average Sea Surface Temperature (SST) are considered normal weather conditions. Each El Niño or La Niña phase persists for two years on average. However, a longer-than-expected phase of El Niño (like the one in 2015) can lead to a much more significant impact on agricultural markets owing to larger drawdown on inventories. THE BEAN IS EXPOSED TO GEOPOLITICS The Americas comprise >80% of total global production. Top producers are Brazil, the US, Paraguay, and Argentina. These nations are also the top bean exporters. China is world's largest importer. It mops up 60% of global import demand. Beans in China is primarily used to feed its massive livestock population. Unlike staple grains, the bean industry is highly centralized given the structure of the sea-borne market. Consequently, they are prone to shocks from disruptions such as trade restrictions and geo-politics. In 2017, soybean was caught in the crossfire in US-China tariff war. Back then, China placed a 25% tariff on beans imported from the US. This drove demand for Brazilian soybeans as the US ones were rendered expensive for Chinese importers. The trade friction adversely impacted the US, to an extent that is feltto this day. Since then, US exports have been far lower while Brazilian exports have gradually expanded. It has also led to structural shifts in bean usage. SEASONALITY IS PREDICTABLE IN BEAN PRICE BEHAVIOUR As previously published , seasonality in beans is driven by the harvest cycle. North American crop is harvested between September and November while South America harvests from March to June. Bean prices decline after harvesting cycles. Distinct price patterns can be discerned by analysing seasonality. Prices rise through the first half of the year from January to June as inventories deplete. Then, they rapidly decline following harvesting in Argentina and Brazil. EL NIÑO FAVORABLY IMPACTS BEANS El Niño’s effect on beans is consistent. Usually, extreme weather typically creates havoc to crop and crop yield. But not so in the case of soybeans. Interestingly, research shows that El Niño favourably impacts American soybeans farmers leading to a 3.5% increase in yield on average. Increased rainfall and lower temperature in the Americas caused by El Niño explains this favourable weather impact on the crop. As Weston Anderson, et al. highlight , the impact is most significant during peak El Niño which is expected next year. While American farmers benefit from benign weather, Asian growers suffer adverse effects of El Niño, resulting in declining yield and production in Asia. OUTLOOK FOR BEANS Taking into consideration the drivers outline as above, larger harvest is expected in Brazil in 2024. In 2023, Argentinian harvest was significantly smaller due to unfavourable weather, and this is expected to recover back to its usual levels. The USDA is forecasting a larger harvest in China in 2024. However, peak El Niño could negatively impact Chinese crop leading to spike in import demand. Seasonal trends point to a winter rally in bean prices ahead. However, historical analysis shows that El Niño years result in a higher-than-average yield in soybean. Combining the effect of (a) record Brazilian output, plus (b) El Niño fuelled greater yields leading to abundant harvest in 2024, the higher-than-average yield in soybean could cause a potential glut. Bean oversupply will cut short a winter price rally. Worse still, a glut could make the post-harvest price crash next year much more severe. SIGNALS FOR BEAN PRICES FROM DERIVATIVES MARKETS The commitment of trader’s report points to declining net long positions by managed money inching towards lows observed during May earlier this year. Even the options market hints at bearish slant with put-call ratio at 1.13x within rising open interest build up in puts in the near term. Since mid-September, data from CFTC shows that bean options traders are positioning themselves against fall in prices as they have added 18,079 lots in puts versus 13,090 lots in calls. HYPOTHETICAL TRADE SET UP With more harvests coming onstream, soybean prices will come under increasing downward pressure in the near term. To gain from crumbling bean prices, a hypothetical short position in CME Soybean Futures expiring in November ( ZSX2023 ) with an entry at USc 1296/bushel and a target at USc 1188/bushel, hedged by a stop at USc 1368/bushel is expected to deliver a reward-to-risk ratio of 1.5x. Each soybean futures contract provides exposure to 5,000 bushels (~136 metric tons) and is quoted in US cents per bushel. Each tick represents one-fourth of a cent (USc 0.25) per bushel resulting in USD12.50 in P&L. • Entry: 1296 • Target: 1188 • Stop: 1368 • Profit-at-Target (hypothetical): USD 5,400 (1296 – 1188 = 108; 432 ticks x 12.50 = 5,400) • Loss-at-Stop (hypothetical): USD 3,600 (1296 – 1368 = -72; -288 ticks x 12.50 = -3,600) • Reward-to-Risk (hypothetical): 1.5x REFERENCES Nature ScienceDirect MARKET DATA CME Real-time Market Data helps identify trading set-ups and express market views better. 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 This case study is for educational purposes only and does not constitute investment recommendations or advice. Nor are they used to promote any specific products, or services. Trading or investment ideas cited here are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management or trading under the market scenarios being discussed. Please read the FULL DISCLAIMER the link to which is provided in our profile description.
CBOT:ZS1!Short
by mintdotfinance
2