Soybeans retrace but find fundamental, technical support
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.
Posted by: Information Services Our Information Services team assists our clients with understanding commodity and ingredient market dynamics. Using our extensive database of intelligence, we also produce regular commodity and commercial market publications covering supply and demand fundamentals, news alerts on events that shape the markets, and resource guides to give you a complete picture of the industries we monitor.