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March 02, 2023
Slightly weaker but mostly flat: CME Soybeans is currently trading at $1,494.5 per bushel as it maintains an active range between $1,494.5 and $1,508.5.
In contrast, positive data for the Soybeans future reported earlier when highly important Crude Oil Inventories data from United States beat analyst expectations of 457,000 with a reading of 1.17 million.
While price action maintains a negative bias, United States ISM Manufacturing PMI (Feb) came out at 47.7, while a consensus of analysts was expecting 48. United States Cushing Crude Oil Inventories released yesterday at 15:30 UTC with a figure of 307,000, while the previous figure was 700,000.
As the day gets underway, chart analysis suggests Soybeans could begin to recover as it approaches significant support, now $7 away from $1,487.5. Dipping below could be an indication that further losses are ahead. Trend-following investors would be interested to note 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. Japanese candlestick formations show when "Bullish Engulfing” is detected at the bottom of a bearish trend, it is typically indicative of a trend reversal. Analysis based on the asset volatility indicates that Bollinger Bands® shows an indication of recovery: the lower band is at $1,490.24, a low enough level to, generally, suggest that the Soybeans future is trading below its fair value.
All in all, the technical analysis suggests Soybeans has no clear-cut direction.
In the meantime, negative performances are also seen in other Grains as Rough Rice is trading around $17.45 (down 7 cents).
Though the Soybeans future has been dropping, other Grains have been performing better: Corn is up 0.55% to $639.25.
With markets struggling for positive sentiment, upcoming macro data could potentially attract buyers in the market as today at 13:30 UTC data for United States Initial Jobless Claims will be released, with an expected decline to 195,000 from the preceding figure of 192,000.
Furthermore, United States ISM Non-Manufacturing PMI (Feb) will be released tomorrow at 15:00 UTC.
Trading mostly sideways for 4 months. The Soybeans future hit a significant low of $1,298.5 around 7 months ago, but has since recovered 15.85%.
