We see Soybean Meal prices trending lower in the near future. This will most likely be accompanied by stories of ASF in China depleting Soybean Meal demand and food price deflation. That will make it very difficult for a buyer to want to extend coverage or make any forward purchases. However, given the our wave count suggesting that this new low will be an intermediate-term, bottom and the fact that prices are in the very low part of the 5-7 year range, this will be the time when the buyer needs to become aggressive. Probability will be in his/her favor and when the trend does change higher, it may be too late.
