Soybeans Slide Back Into the Range: Can Buyers Defend 1200?

Soybean futures have unwound a large part of the late summer rally, sliding from the 1335 area in Sep back into the 1235 to 1145 consolidation range and down to yearly VWAP near 1193. Slowing Chinese buying momentum, risk off pressure in equities and improved yield prospects have weighed on prices, while the pace of Chinese purchases and the unresolved US and China tariff cut talks remain key sensitivities in the weeks ahead. The key levels to watch are 1200 (vicinity of R-VWAP) and 1117-5 (Daily level 2), with a neutral two-way auction as the primary scenario, followed by bullish and bearish scenarios.Pile of soybeans by PAVEL IARUNICHEV via iStock