Soybean Meal Is Heating Up. How Much Higher Can Prices Go?

Core Viewpoint - May soybean meal futures are presenting a buying opportunity due to recent price strength and bullish technical indicators [1][2]. Price Analysis - Prices for May soybean meal futures have rebounded from a January low, indicating a potential upward trend [1]. - A move above the resistance level of $304.10 would strengthen bullish sentiment and create a buying opportunity, with an upside price objective of $327.50 [3]. Technical Indicators - The moving average convergence divergence (MACD) indicator is currently in a bullish posture, with the blue MACD line above the red trigger line and both trending upwards [1]. - Technical support is identified at $295.00, where protective sell stops can be placed [3]. Market Conditions - The recent decline of the U.S. dollar index to a four-year low is favorable for U.S. grains and the soybean complex, enhancing their competitiveness in global markets [2]. - Emerging dry pockets in South American soybean-growing regions are attracting attention from market bulls, potentially impacting supply dynamics [2].