Soybeans price returned above $1500 mark, as potential drought in key producer Argentina sparked supply concerns. Also extremely cold weather across the U.S. Plains raised concerns over weather damage to the winter crop. On the demand side, easing restrictions in China, which is the biggest soy consumer, boosted prices further. Soybean has a potential to finish a volatile 2022 around 12% higher as the war in Ukraine disrupted grain exports from the Black Sea region.
The Commitment of Traders report also showed that non-commercial traders, a category that includes hedge funds, raised their net long position in soybeans.
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Commitment of Traders. Source: BarChart
SOYBEAN price yesterday broke above key resistance at $1480, which now acts as support. Nevertheless price pulled back sharply as buyers failed to break above 200 SMA (red line). Today moods improved again and buyers may launch another attack on the aforementioned moving average. Should a break higher occur, upward move may accelerate towards next resistance at $1555.00, which coincides with 38.2% Fibonacci retracement of the upward wave launched in November 2021. Source: xStation5
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