Petricca’s Pick 11/16/2023

BUY MARCH SOYBEAN OIL

 

Soybean Oil futures is in fact trading close to the lower 25% of the Long-Term trading range where Long Term accumulation is recommended.

 

I will start accumulation under the $51.30 level.

 

 

In the short term, the fundamentals are bullish…

 

Today, the National Oilseeds Processors Association estimated soybean crush at a whopping 189.77 million bushels in October the most on record.

Even with all that production Soybean Oil stocks dropped to 1.099 billion pounds, 28% less than a year ago.

There is no question that demand for making biofuels continues to draw down Soybean Oil supplies.

 

Clients and subscribers should also know that –

 

The DOE (U.S. Energy Department) entitled U.S. Feedstocks Consumed for Production for Biofuels showed another big month for Soybeans Oil as 1.197 billion pounds were used to make Biofuels, thanks to the rapid growth of renewable diesel production in the U.S.

 

As a matter of fact –

 

1 billion pounds of Soybean Oil had never been used in a month to make Biofuels before.

The June to August average of 1.226 billion pounds per month was up 57% from last year’s summer average.

 

Annual U.S. production capacity has increased dramatically 765 billion gallons this year alone.

Total capacity beginning of September at 3.704 billion gallons represent a 67% increase from last year.

 

Expansion is expected to grow for year to come…

 

 

 

 

The Longer-Term fundamentals point to what is a major bull market in the Soybean complex due to tight supplies that will prevail until next year’s harvest and adverse weather conditions in Brazil.

 

 

Speaking of next year’s harvest –

 

Today’s drought monitor speaks volumes as major drought concerns remain in much of the Midwest.

 

Those of you that have an interest in Soybean Oil accumulation for the March through December contract should call me for specific entry levels and council regarding my Long-Term strategies. 312-690-7763

 

Remember there are four important components regarding my strategies…

 

1. Positions are established only in the upper or lower 25% of the Long-Term trading range.
2. Positions are established only when my trend following methodology is up or down within that 25% parameter.
3. Positions are held until positions reach the opposite extreme high or low. (The upper or lower 25% of the Long-Term trading range).
4. Correct money management strategies must be implemented.

 

There is no question that more that 90% of commodity investors lose money…

 

And it’s true that my strategies also incur drawdowns…

 

But – What I offer is a way to be “in the market” when major commodity moves occur.

 

My strategies require one to maintain –

 

• Patience
• Commitment
• Vision
• Discipline

 

Those of you that have an interest in additional details regarding my strategies should call me personally. 312-690-7763.

Would love to hear from you.

 

In the meantime,

 

Have a great year trading!

 

Best

Frank

Questions? Ask Frank Petricca today at 312-690-7763.