Historical highs suggest soybean futures face stiff resistance above $16
A market analyst points to historical highs as farmers ponder the upside potential of soybeans.
Kent Beadle with CHS Hedging says there was a peak of $16.63 in 2008 and five years later prices reached $16.30.
“So two of the major years we peaked out at somewhat close to where our highs were last week, from which we reversed lower. And I think there’s some technical reasons for that.”
Soybean futures also hit $16.77 a year ago and Beadle tells Brownfield there will be significant resistance to challenging lifetime highs.
“Which are about $17.92, which we did in the midst of the drought in 2012.”
Beadle says domestic soybean oil demand will help determine a price ceiling and “being expensive right now isn’t necessarily slowing demand all that much.”