Soybean prices are ready to start a new week with no apparent catalyst on where it will go in the next days. Investors are waiting for developments on the trade war between the United States and China.
Wheat is set to start the week with consolidations after Friday’s rally that brought the grain to highs since February.
On the weekend, news about China imports from the United States has given US farmers and grain investors hopes for more gains in the days to come. However, recent comments from China and the White House has hurt speculations on a quick resolution.
China defends “core interests” against US
As reported earlier, China is not willing to accept all demands from the United States as news agency Xinhua published. The article says that the US is asking China to stop the development of state-owned companies.
It is an attempt to violate China’s economic rights and sovereignty and compels China to damage its core interests according to the agency.
US soybean sales to China up 15.9% in April
Soybean imports from the United States rose 15.9% in China as the Asian country brought 1.75 million tonnes of oilseed, according to data published by the General Administration of Customs on the weekend.
China, the largest soybean buyer in the world, virtually stopped imports from the United States last year due to the trade war conflict between both countries. However, both countries resumed exchanges after a truce agreed on December.
The news on the April increase is good news for US farmers and soybean trading investors that are expecting a quick resolution for the trade war. The excellent news would fuel prices higher.
Soybean remains in range
Prices of soybeans remain inside the range it has been trading since May 17. The grain closed last week at 8.190, while the range is between 8.100 and 8.200.
According to experts, if the commodity break above the 8.200 level, it will find resistance at 8.350. Above there, 8.500 and 8.630.
To the downside, below the 8.100 area, it will find supports at 8.40 and 7.800.
Any break above or below the range will be likely followed by stop lose triggering. However, any movement is now more motivated by fundamental news than for technical matters.