I am Stephen Davis, senior market strategist at Walsh Trading, Inc., Chicago, Illinois. You can reach me at 312-878-2391.
Soybeans are the protein source that will always be needed around the world. In an interesting article published earlier this year, Science Direct sums it up: “Soybean is a versatile crop central to modern agri-food systems, valued for its high protein and oil content, and underpins a wide array of sectors, including livestock feed, human nutrition and health, industrial processing, and renewable energy.”
January 2027 soybean futures closed today at 1263.4, which is a two-month low. Recent flash sales of soybeans to China have done nothing to support the market. Harvest pressure continues to drive U.S. soybean prices down.
In my opinion, we are nearing the time of year for soybeans to trade higher. My mentors taught me to buy soybeans when the harvest is 50 percent completed. The U.S. harvest is now 64 percent completed.
Bullish news of China buying soybeans is being overlooked. U.S. soybean imports to China totaled 361,000 tons in September, up from nothing in September last year. China has purchased more than 60% of its target of 25-million tons of U.S. soybeans in the 2026/27 marketing year.
A trade strategy is to buy January 2027 soybean futures at 1275.0 stop. Yesterday's high was 1275.4. Get filled on this order and watch for momentum to push the price higher. Put a sell stop at 1265.0 stop, good until cancelled (GTC). Profit objective is 1301.0, GTC.
To discuss trading strategies, contact me anytime. Have an excellent day.
Stephen Davis
Senior Market Strategist
Walsh Trading
Direct 312 878 2391
Toll Free 800 556 9411
sdavis@walshtrading.com
www.walshtrading.com
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