Is the Bottom in for Beans?

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Technical Outlook

Tuesday’s price action brought a key reversal, and bullish engulfing pattern on March soybeans. Further evidence that we could be approaching a bottom is the bullish divergence present between the two most recent lows and the standard 14-day RSI. Another factor worth keeping in mind is how managed money funds are positioned in the grain complex. Per the CFTC’s last Commitment of Traders report on Friday, it showed that managed money held a net short position greater than 275,000 contracts across corn, soybeans, and wheat futures. That is the second largest net-short position since late 2019, and short covering could propel prices higher very quickly. A key line in the sand to watch for soybean bulls will be the 1250-1260 area, which is where the contract failed to surpass on the last swing high. If bulls manage to keep the pressure on, and we stage a close above 1250, it is likely shorts will get more aggressive in covering their positions.


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Futures trading involves a substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians, or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.

With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy, and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third-party application. Blue Line Futures employees use only firm-authorized email addresses and phone numbers. If you are contacted by any person and want to confirm your identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500

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