Soybean Futures Expected to Open on the Defensive

The US soybean crop is expected to have a beneficial growing season, with weather forecasts indicating continued favorable conditions in the Midwest. This news, combined with weak cash basis levels and a lower close in old-crop prices on the Chicago Board of Trade's electronic trading platform, is contributing to bearish price sentiment. Market participants are expecting soybean futures to open on the defensive, with losses of 6 US cents per bushel. Technically, the November CBOT soybean contract is approaching a potential support level of $5.50.

Key Takeaways:

• The US soybean crop is in good to excellent health, with beneficial growing conditions expected to continue in the Midwest.
• Weak cash basis levels and a lower close in old-crop prices on the CBOT's electronic trading platform are contributing to bearish price sentiment.
• The November CBOT soybean contract is approaching a potential support level of $5.50.
• The market is short-term oversold, with an accelerating four-month old downtrend in place on the daily bar chart.
• Resistance in the November contract is pegged at $5.76 and again at $5.85.
• The technical analysis suggests that the market may be due for a rebound.

Statistics:

• 6 US cents per bushel: expected loss in soybean futures.
• 9 months: duration of the downtrend in the November CBOT soybean contract.
• $5.76 and $5.85: resistance levels in the November contract.
• $5.58 and $5.50: support levels in the November contract.
• 4 months: duration of the accelerating downtrend in the daily bar chart.

Sources:

• Resource News International via COMTEX
• Chicago Board of Trade (CBOT)
• Bursa Malaysia Derivatives
• Dalian Commodity Exchange