FxWirePro Call Review: Soybean short target further extended as sell-off intensifies on trade tensions and bumper production

Since our last review here, https://www.econotimes.com/FxWirePro-Call-Review-Soybean-reaches-multiple-short-side-targets-final-target-further-extended-1363242  the sell-off in Soybean has intensified further. The market is fearing that the President’s Donald Trump’s intention to impose tariffs on $50 billion worth of Chinese goods might face additional backlash from China in terms of tariffs on U.S. Agricultural products like Corn, Sorghum, and Soybeans. China is the biggest importer of U.S. Soybean. China has also called on its farmers to produce more Soybean to reduce the country’s reliance on foreign imports. In addition to that, the recently published numbers from the United States’ Department of Agriculture suggested bumper crop production this year. The United States is expected to produce 116.5 million metric tons of Soybean this year, just 3 million shy of its record production. Brazil is expected to produce 117 million metric tons, which is a record too.

 We at FxWirePro remain at a comfortable position as we recommended going short 1035 cents per bushel. Soybean has reached the following targets,

Reached - 990 cents/980 cents/975cents/960 cents/945 cents/930 cents, and 915 cents per Bushel. The price is currently at 913 cents per bushel.

In this piece based on the latest calculations the target is further extended from 915 cents per bushel to 865 cents per bushel. However, we expect the 900 cents area to act as a support for a temporary bounce back.