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FxWirePro: Sell U.S. Soybean with Short-term target of 990 cents per bushel

U.S. Soybean has declined after reaching 1066 cents per bushel and is currently trading at 1035 cents per bushel and we at FxWirePro expect a further decline in prices, which presents an opportunity for short-term players, as Soybean outlook remains clouded by trade dispute between the United States and China.

China has 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.

China might be waiting for the opportune moment to impose tariffs on U.S. Soybeans, which could come as early as the second half of the year since China imports the majority of the U.S. soybean in H2 and imports from other countries like Brazil in H1. If a tariff is imposed on U.S. Soybean imports, we can expect a rising differential in prices of Soybean in the U.S. and in China.

With uncertainties looming, we expect the U.S. Soybean prices to remain under pressure.

Trade idea:

Sell U.S. Soybean future or SOYF (CFD of U.S. Soybean future) at the 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. The short-side target is likely to receive extensions.

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