Soybeans: price bounces off key support

soybeans Soared above $1,500 a bushel this week as demand prospects improved and China, the largest consumer, is expected to increase imports in the near future after cattle-related restrictions were lifted. On the other hand, concerns about supply eased as rains improved in Argentina and early harvest progressed in Brazil. At the same time, the US Department of Agriculture confirmed private sales of 130,000 tons of soybeans for delivery to undisclosed destinations in the 2022/23 marketing year, while the weekly export inspection data showed that 1.806 million tons of soybeans were inspected for export last week, down from the 2.190 million tons the previous week.

From a technical perspective, buyers managed to defend the crucial support at $1,480, marked by previous price reactions and the 50% Fibonacci retracement of the November 2021 bullish wave. As long as the price sustains above this level, further upside momentum towards the resistance at $1,550 could occur.

SOYBEAN in the D1 chart. Source: xStation5 by XTB

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