Trade Deal Means China Should be Buying More SoybeansPosted 12/13/2019 10:08AM CT |
January soybeans were up 13-cents overnight and into this morning. Most agricultural and financial markets are trading as if the deal is completed and done. The gap of the downtrend channel is a bullish technical signal overnight as well. There are some strong indications that a deal is done for phase one on agricultural products, which is a step in the right direction to ease or eliminate tariffs. The news is thought to be bullish, but traders will await more details on these headlines. President Trump tweeted about “getting very close to a big deal” and the markets bounced off their lows and rallied. This shows the sensitivity the markets have to a deal getting done. March soybeans gapped the downtrend channel overnight which is a bullish technical development. Support today comes in at 891 and 883 while resistance is up around 905 and 910. Positive news on the trade deal should push the market up to resistance levels and possibly higher depending how strong the headlines are.