Kitso Segolodi
04 Oct
04Oct

Soybeans have officially broken out of their long-term descending trendline (red), with the breakout candle printed on August 11, 2025. Price is currently trading at $1,036.10, and the structure suggests a potential continuation toward key resistance levels — supported by both technical momentum and evolving global fundamentals.



Technical Structure

  • Current Price: $1,036.10
  • Breakout Confirmation Level: $1,054.80
  • Medium-Term Targets:
    • $1,155.20
    • $1,263.00
  • Long-Term Target:
    • $1,384.30
  • Buy Zones on Pullback:
  • Tactical: $929.60–$944.70
  • Strategic Accumulation: $862.20–$944.70

The August breakout above the red trendline marked a shift in market sentiment. Price is now consolidating above the blue ascending support line, with volume holding steady at 12.11K, indicating quiet accumulation. A clean break above $1,054.80 could trigger a medium-term rally toward $1,263.00, with long-term potential reaching $1,384.30.


Fundamental Context

Headwinds

  • South American Oversupply: Brazil and Argentina continue to produce record volumes, capping global price upside
  • Muted Chinese Demand: China’s import volumes remain below seasonal averages
  • Strong USD: Elevated Core PPI readings and delayed rate cuts are strengthening the dollar, pressuring commodity prices

Tailwinds

  • Weather Risk: Dry conditions in Brazil’s key growing regions threaten future yields
  • U.S. Treasury Support: New financing programs for farmers may stabilize domestic supply chains
  • Geopolitical Tensions: Trade route disruptions could elevate agricultural premiums and shift demand toward U.S. producers

Legacy Ladder Perspective

Soybeans offer a strategic commodity play for professionals, SMEs, and institutions seeking:

  • Inflation-sensitive exposure
  • Food security hedging
  • Portfolio diversification beyond equities and crypto

We remain bullish, with a preference for accumulation between $862.20 and $944.70, and confirmation of trend continuation above $1,054.80. Soybeans are not just a crop—they’re a signal of global resilience and a tool for legacy planning.

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