Soybeans Rising ahead of October Purchases by China

August 8, 2018 Share Print 0

Trade war conflicts have caused soybeans to suffer this year, but after a 10 percent surge in the last month, one trader expects the rally to continue to grow.

Bill Baruch, president of Blue Line Futures, told CNBC’s “Trading Nation” on Tuesday that he has a bullish outlook on soybeans and China. Here is what he had to say:

The biggest casualty from China’s retaliation to the U.S. tariffs was soybeans.

Soybeans lost as much as 22 percent from the May 29 high through the July low, their worst levels since December 2008, before stabilizing.

Soybeans are extremely undervalued at $9 a bushel because China doesn’t start making its largest purchases until October and there is light at the end of the tunnel for this war.

via CNBC

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.