- Soybean contract breaks above key resistance on renewed demand expectation
- Additionally, the latest USDA report forecasts lower production, suggesting a price-inducing market squize.
- Soybean contract breaks above key resistance on renewed demand expectation
- Additionally, the latest USDA report forecasts lower production, suggesting a price-inducing market squize.
Soybean futures rose sharply today (+2.4%), recovering from recent declines as traders reacted to renewed optimism over the U.S.–China agricultural trade. January CBOT soybeans gained 20½ cents to $11.45 per bushel, supported by expectations that China may step up purchases of U.S. soybeans following recent diplomatic discussions.
Erratic rainfall in Brazil also bolstered prices by raising concerns over supply. Soymeal and soyoil followed mixed patterns, while corn futures saw modest gains, reflecting broader grain market support in the aftermath of the most recent USDA report. The institution forecasts U.S. soybean production at 4.25 billion bushels, slightly lower than expected and down 3 percent from last year. Yields are projected to reach a record 53 bushels per acre, while the total area harvested is smaller than 2024 at 80.3 million acres.
The contract SOYBEAN rebounded sharply from early trading sellout, driving the price up to its 15-month high. The RSI is currently entering the overbought area, though changing supply and demand fundamentals will likely sustain the higher valuation. Source: xStation5
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