Soybeans lead grains, rollercoaster with buying zone Opportunity

Corn, soybeans, and other softs futures are trading mixed on Monday as investors are digesting China imports of US agricultural goods in July and a new US-Japan trade deal.

China imports of soybean rose significantly in July as ships that were booked during the bilateral truce in December arrived.

Besides, US President Trump and Japan Prime Minister Abe agreed in a trade deal between the two countries. “It’s a very big transaction, and we’ve agreed in principle. It’s billions and billions of dollars. Tremendous for the farmers,” Trump said to reporters in Biarritz, in the French Basque Country.

So, on Monday, agricultural futures traded in a kind of rollercoaster led by soybeans as grains posted gains amid forecast lower revision and tensions between the United States and China. But then, a conciliatory tone of Donald Trump regarding China, and the deal with Japan pushed prices down.

Soybeans rally, but rejects 8.70, trading idea above 8.60

Soybeans rallied at the opening of the Monday session as investors welcomed news from China purchases in July and a new trade deal between Japan and the United States. Futures of Soybeans jumped from 8.55 to trade as high as 8.70.

However, the unit was unable to sustain levels, and it started to retrace towards the 8.60 area in the American morning. Currently, soybean is trading at 8.63, 0.85% positive on the day.

Technical conditions suggest a potential bullish outbreak with the 8.60 area as a buying zone. MACD seems to be ready to go above the zero line with the faster line going above the slower one. Also, the 8.60 level looks like strong short term support.

Price target would be at 8.70 for the first revision, but 8.72 is also possible as it is a good resistance that traders have used as selling area in the past.

That being said, other technical studies, including Momentum, highlights the bearish condition of the oilseed with the 8.57 and 8.55 as immediate supports.

Corn left behind the 3.71 finally

Futures of corn are trading down on Monday despite forecasts for lower US yield and production. However, WASDE report is altering all perceptions, so experts are awaiting for September forecasts.

The grain started the day with gains that drove the unit to the testing of the 3.71 level. However, the contract was rejected and corn fell to 3.66.

Currently, corn is trading at 3.67, 0.07% negative in the day. Technical conditions are mix with MACD and Awesome Oscillator pointing to the downside, but Momentum highlighting an upside opportunity.

If you are a trader, a break below the 3.65 level will open the door for a retest of the 3.58 area.

To the upside, a break above the 3.71 will be a bullish signal for a test of the 3.74 resistance first, and then the 3.80 area.