Soybeans Stuck in Neutral as Record Diesel Prices Support Demand
The soybean market is currently range-bound after several weeks of gains. Despite this, the supply and demand outlook remains bullish due to record US diesel prices and strong Chinese demand.
According to recent crop progress reports, 62% of the US soybean crop has dropped leaves, indicating harvest readiness. Meanwhile, export momentum remains strong, with shipments up 11.6% week-over-week and 34.2% year-over-year, led by China.
The rising diesel prices have bolstered demand for soybeans used in oil crushing, even as the market eyes potential disruptions from US-Iran peace talks and President Xi's state visit to the US.
Techincally, soybean price is trading above its short-term 25-day EMA and medium-term 50-day EMA, with a bullish golden cross pattern in place since mid-July. The months-long trendline continues to offer support to the asset.