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Soybean Oil (Futures Friday)

Friday, April 22, 2022 at 4:57:45 p.m. UTC

Featured Commodity:

Soybean oil.

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.

Technical aspects:

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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