uploads///DecSoybeanTChart

Soybean Prices Were Trading below Key Support Levels

By

Dec. 4 2020, Updated 10:53 a.m. ET

Soybean price trend

Soybean futures prices for January delivery were trading near 875 cents per bushel on December 8, 2015. Prices were trading below the 50-day and 100-day moving averages of 882 and 898 cents per bushel on December 8, 2015. With anticipations for more downward price movements, the prices seem to be moving away from the key moving averages. The below chart suggests that soybean prices might oscillate between 870 and 900 cents per bushel in the short term.

Article continues below advertisement

Price drivers

Anticipated higher soybean production from South American regions supported soybean supply sentiment on December 8, 2015. However, depreciation in the US dollar index and strong sentiment from US domestic soybean demand supported soybean prices on December 8, 2015.

Stock review

The fall in soybean prices negatively affects producers and their ability to spend on fertilizers. Fertilizer companies like (CF) CF Industries Holdings fell by 2.7% on December 8, 2015. The Chemical & Mining Company of Chile fell by 2.0%. However, Midstream Partners (MMLP) rose by 0.75% on December 8, 2015, ending six consecutive days of decline. CVR Partners (UAN) also rose by 7.2% on the projected merger with Rentech Nitrogen on December 8, 2015. The Material Select Sector SPDR ETF (XLB) fell by 1.9% on the day.

Advertisement

More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.