Soybean prices have been the most active of the grains overnight, with soybean trading volume matching that of corn. This is remarkable, given than corn Open Interest is nearly twice that of soybeans. If soybean meal and soybean oil are also counted, the Open Interest of the entire soybean complex would roughly equal that of corn, and the volume would probably be greater.Soybean futures appear to be the favorite grain of traders for the time being, even though prices overnight have straddled the flat line of Friday's settlement price. Trading this chart could be very profitable, given the smooth, sine wave pattern that is seen on these charts. However, taking the trade overnight also carries higher risks because the bid/ask spread is significantly wider. I usually don't trade overnight, because the risk is higher, volume tends to be lower, and profits are more spotty.
The Chicago Mercantile Exchange reports this morning pre-market that much of the activity is due to the Bear Sterns saga and net fund long liquidation, so further softening of soybean prices may be in the offing during the day session. This would be especially true if oil and gold prices continue to soften.
In a fascinating science article related to the health benefits of soybeans, a recent study is indicating that eating soybeans may impede the growth of prostate cancer. Eat your soybeans, men!
Here is the article:
Soybean, Male Sex and Cancer
Volume for wheat has been weak overnight, with the price moving modestly higher.
