Soybean Cash Index: The National Soybean Index (ISY00) extended its major (long-term) downtrend to a low of $9.0983, taking out the previous mark of $9.1791 (August 2024). Theoretical Positions: Leave existing cash coverage in place for now without adding more. Otherwise, but on an as needed basis only.
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 would’ve gotten out of short November 2024 futures positions before the contract moved into delivery at the end of October. New Nov25 positions are on hold for now, though sell stops could be below the Nov24 August low of $9.55 with buy stops above the September high of $10.6975. The Nov25 contract closed October at $10.33.
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.
