Soybean Oil (Futures Friday)
Friday, April 22, 2022 at 4:57:45 p.m. UTC
Indonesia has stopped all palm oil exports. This has caused the bean oil market to rally significantly. Is this a long-term or short-term play? This ban will most likely remain on until local supplies are replenished or the price of veg oil decreases significantly.
On the July futures the market peaked out at 83.32 which is the highest the market has ever gotten.
Is there Trade?: Yes. A very quick short. As news typically overshoots the market and the market falls back to previous support.
· Risk: Market may continue up
· Reward: potential for market to drop down to 79.50
· Duration: under one week
· Mechanics: Sell 10 July bean oil at 81.20 (22/04/22 10:45 am) and have sell order place at 79.50 (using a 1 month chart for technical)
note: might change order to 78 as it looks like has better techincals. see what monday brings
Results: Exit April 25 9 am. Market was at 78.5 gain of .27 cents. Profit of trade was $40,000
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Links to Tracking spread sheet: