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Analyst says soybean market looks ‘incredibly bullish’

Continued hot and dry weather across much of the Midwest has been supportive of soybean futures today.

Meanwhile, market analyst Darin Newsom says he sees “an incredibly bullish situation” developing in the soybean market.

“There’s something brewing out there. Is it reduced production? Most likely. Is it increased demand? That’s still a question market. But for right now we have an incredibly bullish situation, one that continues to grow more so every day,” Newsom says.

Commercial buying in soybeans is good, Newsom says, and the non-commercial side—the investment side—keeps adding positions as well.

“So we have a very bullish situation. It could get a little top-heavy if we don’t continue to see the fundamentals strengthen—then it could fall apart,” he says. “But for right now, we’ve got a very bullish market.”

Newsom says from a strictly technical point of view, his target on November soybeans is 9.25.

“At some point, though, it’s going to start looking a little bit overbought. Can it push higher? Absolutely. As I said, it’s got a very bullish structure right now. But from a technical point of view, the target I’m looking at right now is up around 9.25.”