High yields of soybeans in Argentina continue to exert a negative impact on futures prices. The yields estimates were upgraded after 66.5% of harvests were harvested and the average yield at the time was higher than last year's. The average yield per hectare was 3.19kg compared to 3.17kg in the previous season. The projected yield reached to 57.5m. Tons from 56.4ml.
This news puts pressure on the price of soybeans and we may see a mid-term price drop.
Currently, soybean futures are traded at $ 971.30.
Technically, the price is in a short-term downward trend and corrected to levels of horizontal resistance coinciding with 50SMA and 23.6% Fibonacci correction.
Price Action: bears Pin bar on resistance levels - negative price signal.
CCI(50) is below zero, which means that the downward trend is still in place.
CCI(14) crosses 0 from top to bottom, indicating a new downward impulse.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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