Soybean exports may decrease from South America
Technical Analysis Summary Soybean: Neutral
| Indicator | Value | Signal |
| RSI | Neutral | |
| MACD | Sell | |
| MA(200) | Neutral | |
| Fractals | Neutral | |
| Parabolic SAR | Buy | |
| Bollinger Bands | Neutral |
Chart Analysis
On the daily time frame, SOYB: D1 formed a triangle with resistance in the form of a 200-day moving average line. He must exit it to the top before opening a position. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish movement if SOYB: D1 rises above the 200-day moving average and the last 3 upper fractals: 1470. This level can be used as an entry point. The initial risk limit is possible below the Parabolic signal, the lower Bollinger line and the last 2 lower fractals: 1380. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a trade, can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (1380) without activating the order (1470), it is recommended to delete the order: there are internal changes in the market that were not taken into account.
Fundamental Analysis of -
Argentina and Brazil may reduce the supply of soybeans to the world market. Will SOYB quotes go up?
In the 2022/2023 season, soybean sowing in Argentina slowed down significantly due to drought. According to the Buenos Aires Grain Exchange, there are now 20% fewer areas planted with soybeans in Argentina than last year. In addition, market participants are trying to evaluate the new Argentine soybean export procedure through the soy dollar mechanism. It is assumed that it should increase the profitability of farmers while increasing foreign exchange earnings and tax revenues for the state. Brazil is set to increase the share of biodiesel in domestic use from the current 10% to 15% from April 2023. According to various estimates, such a decision could increase the domestic consumption of soybeans in Brazil by 30 million tons per year. Recall that in recent years, soybean exports from Brazil amounted to about 80-90 million tons.