Typically a set up such as this comes along once a year in each of the grains and this looks to be the time for Soybeans low risk set up.
The Commercial Traders are very heavy sellers of the Soybeans right now as they recognize an overvalued market that has been fueled by the Ethanol craze in Corn.
The downside potential for the beans is at least the length of the first decline, which was $4.61 per bushel. This would bring the Beans down to $9.54 per bushel, which is a much more realistic price based upon the current supply and demand factors.
We will be looking to short the July Soybeans upon a counter trend rally from current levels.
Look for the 13.30 to 13.45 area on the July contract to sell short with a stop loss just above the most recent highs.
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