Overnight Soybean was 4.5 higher...Soybean overnight trading was support from outside market and short covering
- USD lower
- Crude oil (Asia trade) and Malaysia palm oil price gain 1.7% but China soy oil loss 2.5%
- From technical view, Candlestick chart has sign of reversal with support at 967 cent. and buy signal from Slow stochastic indicator. But major trend is down from MACD and neutral RSI. Today price may bounce back for short term with upside resistance at 987-1000 cent.
- Next downside support is 947 and 906 cent. At that point i would long some beans.
- Even if soybean price has pressure from good weather forecast that good for fieldwork next week. But soybean have a fundamental supported from import demand from China still continue buying and shipment will increase when bean coming out from fields. China is committed soybean for Feb shipment already. US crushing margin is positive and better than last year. Finally wet weather make losses in soybean fields (more wet bean in the fields) production may lower than USDA estimated.
- But Bearish factor is huge South America crop and China buying may shift to South America after Feb-Mar shipment.
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