Tuesday, November 27, 2012

Commercial Traders Force Expiration Rally

Commitment of Traders Report Shows Strong Build in Soybean Meal

November 27, 2012

This trade setup is merely a random sample of the day’s trades generated by COT Signals. To track our work their and receive all of our nightly trading recommendations, click here.

  Commercial traders have more than doubled their position in December soybean meal futures over the last month. Clearly they have been ahead of the curve in their anticipation of the seasonal strength the market typically shows between mid October and contract expiration. Friday is first notice day and speculators will need to be out of the market by Thursday’s close. Therefore, there is a strong possibility that the December soybean meal futures will rally on speculator short covering into the notice period. We will place a protective sell stop at the recent low of 420.2 and look to take profits by Thursday’s close.

Commitment of Traders Report Build in Commercial Position

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This information is not to be construed as an offer to sell or a solicitation or an offer to buy the commodities herein named. The factual information of this report has been obtained from sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to the accuracy, and is not to be construed as representation by Commodity & Derivative Adv. The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.


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