July soybean futures at the Chicago Board of Trade are presently trapped in a sideways and choppy trading range on the daily bar chart–bound by strong technical resistance at the March high of $14.42 1/4 and by strong technical support at the April low of $13.28 1/4. The direction in which July soybeans “break out” of the aforementioned choppy trading range is very likely to be the next significant near-term trending price move in the market. Veteran traders know the soybean futures market is heading into the critical planting and growing season in the U.S. Midwest. The summer months can produce high price volatility in the soybean market as weather scares develop and play out. Given the extra tight world supply and demand balance sheet for soybeans at present, any potentially adverse weather developments in the U.S. Corn Belt in the coming months would likely provide for strong upside price action. Meantime, before most of the U.S. soybean crop has been planted, the soybean futures markets languishes in the choppy trading range. Near-term technical resistance for July soybeans is located at last week’s high of $14.00 1/2, at $14.10 and then at $14.17 3/4. Chart support is located at Monday’s low of $13.81 1/4, at $13.75 and then at $13.68. Stay tuned!–Jim Wyckoff
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