September soybean meal futures (ZMU25) present a value-buying opportunity on more price strength 

See on the daily bar chart for September soybean meal futures that prices have been trading mostly sideways for the past month. It’s my bias that this price action is “basing” that has or soon will put in a market bottom. Longer-term soybean meal price chart history shows that prices around the $300.00 per ton level are value-buying opportunities.

Fundamentally, the U.S.-China trade war is starting to thaw following the weekend trade talks between the two nations that produced positive results and a 90-day delay in most tariffs against each other. China is a major soybean consumer. Better U.S.-China trade relations will very likely mean more U.S. soybean exports to China. Also, soybean traders know this is the time of year when weather-market scares in the U.S. Corn Belt pop up quickly to rally prices. More years than not, some degree of a weather scare pops up in the soybean market to boost prices.

A price move in September meal futures above chart resistance at $305.00 would become a buying opportunity. The upside price objective would be $335.00, or above. Technical support, for which to place a protective sell stop just below, is located at the recent low of $294.30.

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%): 

Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.