The US and China can remove part of the mutual restrictions in foreign trade
The leaders of the United States and China will negotiate at the G20 summit. Among other things, they will discuss issues of US soybean imports to China. Will SOYB prices rise?
In April of the current year, China increased import duties on US soybeans by 25% in response to restrictions on exports of a number of Chinese goods to the United States. After that, soybean prices also fell by nearly a quarter. In 2017, China accounted for 56% of US soybean exports. US President Donald Trump and Chinese President Xi Jinping participate in the G20 summit, which will be held from November 30 to December 1, 2018 in Argentina. The United States accounts for 35% of the world soybean harvest and another 33% and 14% are produced by Brazil and Argentina. In world soybean exports, the United States accounts for 37%. Brazil accounts for 47% and Argentina - only 5%. In case of a reduction in customs tariffs and resumption of US soybean supplies to China, its prices may noticeably increase.
On the daily timeframe, SOYB: D1 approached the upper boundary of the neutral range. A number of technical analysis indicators formed buy signals. The further price increase is possible in case of a resumption of demand by non-Chinese buyers and a reduction in duties.
Summary of technical analysis
Position Buy
Buy stop Above 904
Stop loss Below 854
The leaders of the United States and China will negotiate at the G20 summit. Among other things, they will discuss issues of US soybean imports to China. Will SOYB prices rise?
In April of the current year, China increased import duties on US soybeans by 25% in response to restrictions on exports of a number of Chinese goods to the United States. After that, soybean prices also fell by nearly a quarter. In 2017, China accounted for 56% of US soybean exports. US President Donald Trump and Chinese President Xi Jinping participate in the G20 summit, which will be held from November 30 to December 1, 2018 in Argentina. The United States accounts for 35% of the world soybean harvest and another 33% and 14% are produced by Brazil and Argentina. In world soybean exports, the United States accounts for 37%. Brazil accounts for 47% and Argentina - only 5%. In case of a reduction in customs tariffs and resumption of US soybean supplies to China, its prices may noticeably increase.
On the daily timeframe, SOYB: D1 approached the upper boundary of the neutral range. A number of technical analysis indicators formed buy signals. The further price increase is possible in case of a resumption of demand by non-Chinese buyers and a reduction in duties.
- The Parabolic indicator gives a bullish signal.
- The Bollinger bands have narrowed, which indicates low volatility. Both bands are titled upwards.
- The RSI indicator is above 50. It has not reached the overbought area yet. No divergence.
- The MACD indicator gives a bullish signal.
Summary of technical analysis
Position Buy
Buy stop Above 904
Stop loss Below 854