Soybean Prices Tied to US Dollar as Economic Data Looms
The US dollar has broken out to a fresh two-month high after rising for 10 of the past 14 sessions, bolstering bets on Fed interest rate hikes. Soybean prices have been stuck in a choppy market as investors await economic data from the upcoming US PCE inflation report and nonfarm payrolls.
Investors are looking at Wednesday's US PCE inflation report and Friday's nonfarm payrolls for hints of rising inflation, which would boost Treasury yields and the US dollar. A stronger greenback could weigh on soybean prices as it renders them more expensive for buyers holding foreign currencies.
The CBOT Soybean Futures (ZSF) have been trading near $13.10-$13.20 resistance, with a sell recommendation below this range. On the lower side, a decline past $12.80 would invalidate this thesis.