Funds still support soybeans, despite correction and adjustment in positions

The market showed a strong correction after the recent surge that took prices close to USD 10.80 per bushel for soybeans. However, there was a significant reaction from sellers, keeping soybeans still within a support and resistance zone, with a narrow range between 40 and 50 cents on the CBOT. According to the latest CFTC report, funds reduced their net long position by more than 34%. Yet, the market remains supported by significant purchases, with more than 50 thousand net long contracts—which prompts support even after the recent adjustments.

Currently, soybean prices are operating at the limit of the current support, at around USD 10.25/bushel, with some buying volume entering the market. However, there are divergent signals: prices are in a region of relevant support, with moderate buying volume, but are trading again below the moving averages and with the MACD indicating weakness. Therefore, the current scenario does not yet characterize a clear trend. While prices do not break the last support (the previous bottom) or surpass the resistance at USD 10.80, there will be no defined directional projection. The market remains in an indecision zone and may seek either new lows or resume bullish movements on the CBOT.

Tags: soybeans, Market, prices