For whatever reason, traders seem to be hopeful that a solution to the trade war may come sooner than later, but this thought may be short lived.  Trade tensions continued to weigh on the markets yesterday, with equities and energy markets taking the biggest hits.  More details of the second round of Market Facilitation Program (MFP) payments were announced but caused more confusion than clarification for the producers.  MFP will be made based on a single county rate multiplied by a farms total planting to those crops for 2019.  Farmers will need to plant crops to get a payment and PP acres will not be eligible.  The 10-14 days forecast is still showing a wet pattern for the Midwest and Great Plains.  China soybean imports for April reached 7.64 million tonnes from 4.92 million last month and 6.92 million tonnes last year.  As mentioned earlier, the forecast remains wet moving forward, which could further delay corn planting for producers.  If we see farmers start to bypass corn and start planting beans, this could be devastating for the soybean market.  Resistance comes in at 830 and 840 while support comes in at 812 and 805.

Soybeans Jul ’19 Daily Chart

Soybeans Jul '19 Daily Chart

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Tony Cholly

Senior Market Strategist

Tony majored in Economics at Eastern Illinois University. He performed his thesis on the market price of corn in the market and the factors that affect it. Tony was drawn to futures trading because of the opportunity to have financial gains in an economic environment. He prides himself on working with customers one-on-one and developing a trading strategy based on the client's needs and wants.

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