Soybean Cash Index: The National Soybean Index (ISY00) looks to be in a major (long-term), holding above the August low of $9.1791 during September. The argument could be made the NSI completed a bullish 2-month reversal, closing last month near its monthly high of $10.0235. If so, the index would be in a major uptrend. Theoretical Positions: End users could extend their cash coverage near the September settlement of approximately $9.94.
November Soybeans: While Nov24 still has not completed a clear bullish reversal, stochastics established a bullish crossover below the oversold level of 20% during August indicating the major trend could soon turn up. Theoretical Positions: Traders could still be short Nov24 from near the February 2024 low of $11.2275. Given the bullish monthly stochastics and low implied volatility of the futures market, call options could be bought near the August settlement. The Nov24 $10 call option closed August at 27 5/8 cents and 61 2/8 cents at the end of September.
The Teucrium Soybean Fund (SOYB) still has not completed a bullish reversal pattern, though monthly stochastics did establish a bullish crossover below the oversold level of 20% during August indicating the major trend could soon turn up. Theoretical Positions: Investors are likely on the sidelines, waiting for completion of a bullish reversal pattern, confirming a move to a new major uptrend. Call options could’ve been bought based on the bullish crossover by monthly stochastics.
