Regardless of what the fundamentals are saying there seems to be a little bit of strength coming into soybeans in recent days. I’m already in a soy/corn spread and another soybean calender spread.
For that reason I’m hesitant to get to overexposed here – especially given the abundant supply.
However soymeal has really found support over the last few trading sessions.
I’m looking at the July 15 soymeal – soyoil spread. Again this one is tracking soymeal which seems to be turning around.
I’ve got a minimum level of expose across my three soybean trades as to not risk too much here as essentially they are all very highly correlated.
There has been a little bit of strength in soybeans since the open of electronic trade so I’ve taken an early position.
I’m long at 12430.
I’m looking at the spread in terms of equity because soymeal and soyoil have different point values.
So for those interested it’s ZM x 100 – ZL x 600.