Beans reached extreme oversold, can’t rule out minor bouncePosted 05/24/2019 8:45AM CT |
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