China Trade Uncertainty Sparks Overnight Sell-Off Before Bulls Charge to Fresh Highs this Morning
Soybeans have traded in nearly a 45 cent range this morning as headlines swings the market in both directions, presenting some great opportunities for shorter term traders. We continue to believe this could be setting up for a traders paradise, especially relative to the relatively mute summer in grain markets.
Meeting Adjourned
Lack of details sent grains lower in the very early morning trade, but those losses were quickly recovered following statements from Scott Bessent which provided more clarity:
BESSENT: CHINA HAS AGREED TO BUY 12 MILLION METRIC TONS OF SOYBEANS THIS SEASON
BESSENT: CHINA HAS AGREED TO BUY A MINIMUM OF 12 MILLION METRIC TONS OF SOYBEANS PER YEAR FOR THE NEXT THREE YEARS
BESSENT: OTHER COUNTRIES WILL BUY 19 MLN METRIC TONES OF U.S. SOYBEANS
Soybeans
Technicals (January)
It’s been a busy morning for soybean traders with the lack of details around trade with China sent prices back to our first support pocket from 1066 1/2-1071 3/4. Those losses were quickly recovered after Scott Bessent provided some more details, which sent beans back into positive territory, above yesterday’s high, and within arm’s reach of Tuesday’s high. All in all, we’ve seen about a 38 cent range from the early morning session. Money flows have been constructive and this morning’s headline is friendly. You can argue the semantics of it all, but for now, prices are saying “don’t fight the tape”.
Technical Levels of Importance
Resistance: 1112 3/4-1114 3/4****, 1125-1130**
Pivot: 1083-1087
Support: 1066 1/2-1071 3/4***, 1054-1058 3/4***
Seasonal Tendencies Update
(Updated on 10.27.25)
Below is a look at historical price averages for January soybean futures on a 5, 10, 15, 20, and 30 year time frames (Past performance is not necessarily indicative of future results).
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