Porto Alegre, September 29, 2020 – Soybean futures contracts had a week of negative corrections in Chicago after strong gains accumulated in the previous five weeks. After approaching the level of USD 10.50 per bushel, the highest price since May 2018, the spot position closed last Friday at USD 10.02 per bushel, having fallen 3.9% over the week.
Technical signals already indicate that the market was in an overbought area at the end of the previous week, which could trigger a profit-making movement by funds. Moreover, the favorable climate for the harvest in the United States and the seasonality with the arrival of the new U.S. harvest weighed on the fundamental side. Despite the decline, the good sales volumes of U.S. soybeans to China prevented the loss of the level of USD 10.00 per bushel.
Players will keep an eye on the movements of the Chinese demand, the climate for the U.S. harvest, and the climate for the planting in South America.
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