Soybean futures plummeted after testing a multiyear high last Monday, as COVID-19 concerns led to a selloff in the equity and commodity markets. Friday’s trading reversed the trend, meeting technical (and psychological) support near $10.50 per bushel. Fundamentals remain bullish both in the U.S. and globally, but the uncertain impact of COVID on global demand is providing at least a temporary ceiling.
Speculative money continues to drive the market, and weather continues to drive fundamentals. A minor liquidation of commodity futures related to COVID fears took a bit of steam out of the market temporarily. However, longer-term solidly bullish fundamentals limited the decline and offer support for prices to remain near the higher end of the recent price range.
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