Cash Soybeans: The Barchart National Soybean Price Index completed a bullish key reversal on its weekly chart last week, confirming a new secondary (intermediate-term) uptrend is in place. However, the major (long-term) trend has not turned up yet.

Theoretical Positions:

  • End users should cover needs through at least August based on the bullish key reversal. Long-term needs will be covered when a buy signal is established on the NSPI’s monthly chart.

Now-crop Soybeans: The Nov23 contract came up just short of completing a bullish spike reversal on its weekly chart, meaning it technically remains in a secondary downtrend. However, weekly stochastics completed a bullish crossover below the oversold level of 20% the week of May 22 so it’s possible the Horseshoe Principle could come into play with Nov23. For now, the major trend also remains down on the continuous November soybean monthly chart.

Theoretical Positions

  • Expected 2023 production could have a solid percent sold near $14.05.
  • Short-dated new-crop July $13 calls might’ve been bought for less than 20 cents