Sell Soybeans (November)

Soybeans (and corn for that matter) have been dragged higher on the back of supply concerns in Wheat.  Fundamentally, I am bearish as the weather outlook is very favorable in the Midwest and the condition ratings keep improving.

The only risk is that a La Nina event could be forming, which would affect the crop in South America for next year.  The chances of this occurring seem unlikely at this time. 

As you can see on this chart, Soybeans were only able to close above 983 once and was swiftly rejected.  Here is a well defined risk/reward trade.  Short at 983 with your stop being a close above 993 or two days in a row closing above 983.














Chump1 is currently net short Soybeans (September and November)