Demand Finally Cooling for Beans?
?? Fundamentals
Soybean demand remains robust in recent weeks, which has fueled the rise in prices. Last week’s shipments were 46.6 million bushels, leading many to believe that yesterday’s export inspections would come in between 45 and 55 million bushels.However, inspections came in at a disappointing 36.99 million bushels. This may be a sign that demand could be cooling, which may put pressure on supplies.
Argentina and Brazil are expected to see healthy rain over the next two weeks, especially the southern Brazilian growing region. Many traders were also a bit disappointed that the improved economic conditions resulted in Chinese policymakers declining to add a new round of stimulus.
?? Technical Notes
Turning to the chart, we see the January Soybean contract trading just below resistance at the 1500 level. If prices manage to break through the 1500 mark, the market may find resistance at the 1550 and 1575 levels.
Prices did touch the 100-day exponential moving average yesterday, but prices quickly backed off. Yesterday’s price action did result in what could be interpreted as a gravestone doji. However, confirmation would be needed to confirm a short-term reversal. The RSI is giving overbought readings.
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