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Soybean Futures Spike As S. America’s Drought Diminishes Harvests

COMMODITIES
  • Soybean futures rose 2.6% to settle at $15.285 a bushel, after peaking at $15.39, the highest for a most-active contract since May 28 as South America’s harvest continues to wane amid adverse weather conditions.
  • Rising petroleum prices are an additional tailwind for crop markets, since biofuels made from corn and soybeans are blended into gasoline.
  • StoneX cut its estimate for top producer Brazil by 5.6% to 126.5 million metric tons, citing drought. That compares to last year’s crop totaling 145.1 million tons, and follows other expectations of declining prospects, dashing hopes of a supply recovery and relief from food inflation. (Bloomberg)
  • The Soybeans extension maintains the bullish price sequence of higher highs and higher lows that defines an uptrend. Furthermore, moving average conditions also remain in bull mode, highlighting the current sentiment.
  • The next level of technical resistance comes in at $1546.00 - 3.00 proj of the Nov 9 - 17 - Dec 1 price swing.

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