FxWirePro Call Review: Soybean short side target extended to 975 cents/bushel

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.

The rationale behind the call has been the ongoing trade dispute between the United State and China, which already announced a hefty anti-dumping move against US sorghum imports, as a multi-billion dollar tit-for-tat trade spat between the two nations continues. According to reports, U.S. importers would have to pay a temporary 178.6 percent deposit on their value of imports from 18th April. China has put U.S. Soybean imports in the multi-product list, via which the country plans to retaliate against the U.S. move on tariffs.

Our short call is currently in the money as SOYF is trading at 1015 cents per bushel and based on our latest calculations, we would like to extend our short side target from 990 cents to 975 cents per bushel.