Will Trade Concerns Mark A Bottom For Soybeans?

Soybeans have been stuck in a brutal down-trend since breaking below $10/bu in early June.

“Trade war fears” has been the most common narrative to support the decline in price.

Friday’s rally came the first day after some new tariffs took effect.  Does this suggest that a bottom is near for soybeans?

August soybeans (ZSQ8) rose by over 4.5% to $8.775/bu, above the monthly point of control near $8.72/bu. There appears to be some areas of repair above $9.00/bu and $9.50/bu if soybeans can form a bottom here.

Here’s a look at the chart:

soybeans price bottoming chart futures july 8 2018

Greek Neutral

Market-makers and large traders often construct delta- and gamma-neutral portfolios to optimize risk and reward.  As a result, we track and report on the total options market delta- and gamma-neutral for about a dozen different markets.

soybeans options price delta gamma neutral chart july 8


  • Once the August contract became the front-month option expiration, the point of gamma-neutral has trended with price.
  • Delta-neutral remains above price.

We wish you all the best in navigating these markets.  To learn more about our research, please visit our website: https://www.viking-analytics.com/price-magnets.html


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