Soybeans Get Boost from U.S./China Progress

February 21, 2019 8:37AM CST

March soybeans have started the day trading as high as 916^6 off news of U.S./China trade progress headlines. Thursday morning, we saw reports of China proposing an additional $30B in ag products from the U.S. as well as both parties looking for shorter term measures. Tuesday and Wednesday, we saw the market trade down to support at 893-894 before closing up off the lows both days. Today’s move puts soybeans back in the wedge pattern we had seen for the past couple months. Even with today’s move higher, fundamentals are still bearish. If we see soybean acres in line with average estimates of 86.1 million acres we could see another record high ending stocks number. South America’s production also remains strong which adds to the bearish pressure. Support comes in at 904^5 with resistance at the upper trendline around 919. Trade breaking 894^5 would continue the trend to the downside with 880 being the next support level. Positive news on U.S./China trade supports the market but soybeans have bearish fundamentals that still are providing pressure.

Soybeans Mar '19 Daily Chart

Soybeans Get Boost From U.S./China Progress


RJO Futures | 222 South Riverside Plaza, Suite 1200 | Chicago, Illinois 60606 | United States
800.441.1616 | 312.373.5478

The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that RJO Futures believes to be reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgement at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.

This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.

Distribution in some jurisdictions may be prohibited or restricted by law. Persons in possession of this communication indirectly should inform themselves about and observe any such prohibition or restrictions. To the extent that you have received this communication indirectly and solicitations are prohibited in your jurisdiction with registration, the market commentary in this communication should not be considered a solicitation.