Soybean will receive the needed support from the trade war

Over the last few years, the prices of agro-cultures have moved in a downward direction, with most of the main agro-cultures consolidating at record low prices. In 2018. consumption is expected to reach record values, and this will lead to a “shortage” of some raw materials.

The risk that the United States may impose more trade sanctions may lead to greater price uncertainty. In the event of a trade war between the US and China, soybean crops will initially lose value but then quickly return the losses.

From a purely technical point of view, it is clear that this devaluation has already begun, with soybean’s price close to key levels of support. This gives good opportunity for long positions with excellent risk / reward ratio.

 Trader Aleksandar Kumanov

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