Soybean Hit 9 Year Low Due to Trade War
Elliott Wave Forecast | Jun 22, 2018 10:26AM ET
Early this week the price of Soybean futures (ZS_F) plunged to a new low in more than 9 years due to the tit-for-tat trade war between U.S. and China. Soybean Futures started to drop on Friday last week after Trump administration decided to go ahead with 25% tariff on $50 billion worth of goods from China. The list of targeted goods includes technology products which are part of Beijing’s Made in China 2025 initiative.
China quickly retaliated with its own 25% tariff on 545 U.S. goods worth equal value, including agricultural products such as soybeans, corn, and wheat. Soybean futures for July delivery dropped more than 7% to $8.415 a bushel, the lowest since March 2009. The price is now 10% down for the year, and more than 17% down for the quarter.
How to trade WXY Elliottwave Structure. ” Soybean Futures is expected to bounce in swing #6 and as long as the rally fails below swing #4 (1085.7), then it’s expected to extend lower towards 702.1 – 774.7. So the price per bushel target is $7.02 – $7.75 approximately.
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