{"id":15373,"date":"2024-10-15T10:31:06","date_gmt":"2024-10-15T10:31:06","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=15373"},"modified":"2024-10-15T10:31:06","modified_gmt":"2024-10-15T10:31:06","slug":"soybean-and-wheat-fall-dollar-pressure-prices","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/soybean-and-wheat-fall-dollar-pressure-prices\/","title":{"rendered":"Soybean and Wheat Fall, Dollar Pressure Prices"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Soybeans fell 1% to $9.86 a bushel, pressured by record U.S. output.<\/li>\n\n\n\n<li>Wheat dropped 1.1% to $5.78-3\/4 as USDA raised stock estimates.<\/li>\n\n\n\n<li>Brazil\u2019s forecast rains improve soybean planting prospects.<\/li>\n\n\n\n<li>A stronger U.S. dollar weighs on global trade competitiveness.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p class=\"wp-block-paragraph\">Soybean futures dipped for a fourth consecutive session on Tuesday, down 1% to $9.86 a bushel.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The market remains pressured by the largest U.S. soybean crop on record, with the USDA slightly revising production estimates lower but confirming<strong> <a href=\"https:\/\/www.agriculturedive.com\/news\/corn-soybean-record-harvest-price-decline-commodities\/729747\/\" title=\"\">strong output.<\/a><\/strong><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Crop Watch: Another brisk harvest week as producers switch focus to corn <a href=\"https:\/\/t.co\/g0hdNbvQQo\">https:\/\/t.co\/g0hdNbvQQo<\/a> <a href=\"https:\/\/t.co\/iFE2RwPxlD\">pic.twitter.com\/iFE2RwPxlD<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1846105008435052689?ref_src=twsrc%5Etfw\">October 15, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Further weighing on soybean prices are improved weather forecasts in Brazil, where expected rains are likely to break a prolonged dry spell.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As of last Thursday, only 8.2% of Brazil\u2019s soybean area had been planted, compared to 17% during the same period last year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With the incoming rains, planting activity is expected to pick up, adding downward pressure to global soybean prices.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Soybean-C Technical Analysis<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/10\/image-24-1024x445.jpeg\" alt=\"\" class=\"wp-image-15374\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><em>Picture: Soybean futures drop to 9.901, weighed down by bearish momentum, as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" title=\"\">VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">From the soybean futures chart, we see a <strong>close at 9.901<\/strong>, reflecting a <strong>0.76% decline<\/strong> during the session.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The price dropped from a high of <strong>10.258<\/strong> to a low of <strong>9.871<\/strong>, indicating bearish momentum. The moving averages (5, 10, and 30-period) are trending downward, confirming the continued pressure on prices.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>MACD<\/strong> line remains below the signal line, with negative histogram bars growing, suggesting persistent selling pressure.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Recent news reveals that soybean prices have been under pressure due to ample global supply, with Brazil expected to produce another record crop of <strong>169 million metric tons<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Demand from China has shifted more toward Brazilian soybeans, reducing U.S. exports, further weighing on prices.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The harvest season is also underway, and seasonal trends suggest soybean prices tend to bottom out in <strong>October<\/strong> before stabilising later in the year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Wheat Slips as USDA Raises Global Stock Estimates<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/10\/image-25-1024x445.jpeg\" alt=\"\" class=\"wp-image-15375\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><em>Picture: Wheat futures decline to 5.628, with selling pressure building amidst ample global harvest forecasts and intensified competition, as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" title=\"\">VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Wheat futures closed at <strong>5.628<\/strong>, declining by <strong>0.93%<\/strong> for the session. The price hit a session low of <strong>5.616<\/strong> from a high of <strong>5.701<\/strong>, reinforcing the downward trend.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The chart reflects bearish alignment in the moving averages, with prices consistently below the 30-period average.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>MACD<\/strong> shows the MACD line well below the signal line, with negative histogram bars increasing, indicating that selling momentum is intensifying.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While these higher stock estimates weighed on prices, traders remain focused on disruptions in supply from the Black Sea region.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>See also: <a href=\"https:\/\/www.vtmarkets.com\/analysis\/wheat-rises-on-global-production-concerns\/\">Wheat Rises as Dry Weather Impacts Global Crops<\/a><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Russia has set higher export duties and price thresholds for wheat shipments, but these measures have not been as restrictive as initially feared.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Weather and Geopolitical Risks Create Mixed Outlook for Wheat<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Wheat production remains under pressure in Argentina and Australia, where dry conditions have reduced <strong><a href=\"https:\/\/www.reuters.com\/markets\/commodities\/crop-watch-another-brisk-harvest-week-producers-switch-focus-corn-2024-10-15\/\" title=\"\">yields<\/a>.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Argentina recently received some rain over the weekend, providing minor relief, though uncertainties persist.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Wheat prices have stayed relatively stable compared to corn and soybeans, which have seen steeper declines.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Stronger U.S. Dollar Impacts Global Trade Dynamics<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Both soybean and wheat futures are feeling the impact of a stronger U.S. dollar.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The rising dollar index makes U.S. exports more expensive for international buyers, complicating trade flows and adding further downside risk to prices.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As the United States is a leading exporter of both crops, currency trends will continue to play a crucial role in determining market direction.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Looking ahead, market participants will monitor South American weather patterns and Black Sea developments closely.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Any delays in Brazilian planting or geopolitical shifts in the Black Sea region could affect supply outlooks, potentially stabilising prices in the coming weeks.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Start trading now \u2014 click <a href=\"https:\/\/www.vtmarkets.com\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\">here<\/a> to create your live VT Markets account.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Soybean and wheat futures decline as U.S. harvests expand and Black Sea supply uncertainties linger. &#8211; vtmarkets.com <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[44],"class_list":["post-15373","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-commodities"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15373","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=15373"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15373\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=15373"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=15373"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=15373"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}