Soybeans Tech Update

A consolidating week for beans as the market tries to find its place amid the changing landscape of a covid-19 world. In declining volume prices have turned stagnant this week as trade seems uninterested. As we wait for the next domino to fall, it’s not a bad idea to identify some upside chart-based targets.  

The trend in beans is negative neutral as prices have struggled to breach a long-standing trend line since the start of the year. That trendline, now reinforced by the 50-day moving average, is a clear first target at 880 today. Above there 900 seems to be carrying more psychological importance as the market has only briefly traded above the even marker since Mid-January.

Breaching the technically significant area from 880-900 may require a spark from a fundamental shift in sentiment. We just lack that spark today. That said, with funds even and the market oversold if the interim trendline can be broken there might be some pent-up buying interest. Stay tuned.