FxWirePro Call Review: Soybean reaches multiple short side targets; final target further extended

Back in April this year, in an article named, “FxWirePro: Sell U.S. Soybean with Short-term target of 990 cents per bushel”, available at https://www.econotimes.com/FxWirePro-Sell-US-Soybean-with-Short-term-target-of-990-cents-per-bushel-1265358 we suggested going short on U.S. Soybean future or SOYF (CFD of U.S. Soybean future) at the then current rate of 1035 cents per bushel (SOYF) with a target 990 per bushel and the stop loss around the recent peak of 1066 per bushel. We also hinted at the possibility of an extension of the target.

And in a subsequent review, https://www.econotimes.com/FxWirePro-Call-Review-Soybean-short-side-target-extended-to-975-cents-bushel-1297132 we extended the final target from 990 cents per bushel to 975 cents per bushel, and then extended the final target again to 945 per bushel with two interim targets around 980 and 960 area - https://www.econotimes.com/FxWirePro-Call-Review-Maintain-short-positions-in-Soybean-Interim-targets-added-and-final-target-revised-lower-1318069

After a brief rally on the ZTE settlement and China’s removal of tariffs on Sorghum, the price of Soybean once again came under pressure as China ordered its farmers to increase the production of Soybean to reduce dependency on imports. The United States and Brazil are the two biggest exporters of Soybeans to China. In addition to that, this year’s forecast of another bumper crop has also started to weigh on the price.

Soybean price has reached 953 cents per bushel and reached our anticipated targets at 990 cents, 980 cents, and 960 cents per bushel.

Trade idea:

Maintain short positions in Soybean. However, a correction is looking very likely, which should be used to enter fresh short positions. The final target is now revised from 945 cents to 915 cents per bushel.