🌱 Soybean soars for the 6th week

⏫ Soybean is up 5% already this week and on pace to cap 25%+ rally with 6 weeks of consecutive gains. Could this be just the beginning?

While the bulk of market focus has been reserved lately for instruments like US100, OIL.WTI or GOLD, Soybean is quietly but consistently building an impressive rally that has just taken price to the highest level since May 2018. Yes, this is the point at which Trump escalated Trade War with China and US Soybean was one of the victims. This time, China seems to be delivering on their promises of agricultural purchases and US Soybean sales to China has soared to record levels.

Source: Bloomberg

Soybean is faced with a potentially strong resistance level around $1075 but then again these levels are nowhere near records from 2012 at above $1700. Much will depend on relations between the US and China. Chinese purchases may stop abruptly if these relations deteriorate.