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April 27, 2023The Soybeans future dropped to $1,404, hitting its lowest point in 5 months. Later, it recovered $5 and is now trading at $1,409.
Pending Home Sales data from United States will be released today at 14:00 UTC with analysts expecting a decline to 0.5%. Potentially significant price fluctuations in the Soybeans future are expected to follow.
Following a previous reading of 2.6, GDP in United States released today at 12:30 UTC fell short of the two figure expected by analysts with an actual reading of 1.1. United States Crude Oil Inventories published yesterday at 14:30 UTC came out at -5 million, falling short of the -1.49 million projections and continuing its decline from the previous -4.58 million figure.
In contrast, positive data for CME Soybeans reported earlier when data for United States Initial Jobless Claims published today at 12:30 UTC came out at 230,000, beating projections of 248,000 and showing improvement over the preceding figure of 246,000.
Technical chart analysis shows Soybeans could begin to recover as it approaches significant support, now 8 cents away from $1,409. Dipping below could be an indication that further losses are ahead. With regards to technical trend indicators, chart analysis show that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. According to momentum evaluation, the RSI is a momentum oscillator that measures changing price movements on a scale of 0-100. In the Soybeans future's case, the index has fallen below 30, signalling that the asset is oversold. According to asset volatility analysis, the Soybeans future's lower Bollinger Band® is at $1,413.32, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains.
Overall, the technical outlook suggests Soybeans is likely to remain muted for the immediate future, with no clear-cut direction.
Taking a look at other Grains commodities, negative performances are evident as Corn descends 1.66% to trade around $591. Oats is trading around $321 (down $5.5). Rough Rice is down to $17, losing 9.5 cents, after closing at $17.09 in the preceding trading session.
Looking ahead, ongoing depreciation may be prolonged as United States Pending Home Sales projected to come out at 0.5% — worse than previous data of 0.8%; data will be released today at 14:00 UTC.
Furthermore, United States Core PCE Price Index (MoM) (Mar) is scheduled for tomorrow at 12:30 UTC.
Trading mostly sideways for 2 months. The Soybeans future is now trading 7.08% below its 3-month high of $1,746.75.
