Soybean Futures Shows Strong Upward Momentum

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By :  ,  Financial Analyst

Soybean Futures Shows Strong Upward Momentum

Soybean Futures rally 40% from the low of 2020, recording 4-year high.

The U.S. Department of Agriculture released the report for 2020/2021 marketing year and said U.S. soybean production is forecast at 4.17 billion bushels, down 98 million from the previous forecast due to lower crop yields. Soybean ending stocks, meanwhile, are forecast at 190 million bushels, down 100 million from last month's forecast.

On a daily chart, the prices have recorded a series of higher tops and higher bottoms since April, indicating a bullish outlook. Currently, the prices are trading above both rising 20-day and 50-day moving averages. The relative strength index is supported by the rising trend line.

As long as the support level at 1045 US cents is not broken, Soybean could consider the continuation of uptrend to the resistance level at 1210 US cents and 1320 US cents.

Source: GAIN Capital, TradingView
Related tags: Commodities

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