Soybeans and lean hogs as US-China tension rise
We look at two key commodities that might be affected as US-China trade tensions flare.
Soybeans
Global soybean prices have spent two months forming a base around 830, holding above 820. Recent price action has left it in a range between 830 and 850, but it has now succeeded in breaching, almost by accident, trendline resistance from the January highs. A move above the 50-day SMA (850) would bolster this view, and above 860 the price then targets
Lean hogs
It is a different story for lean hogs, which soared from the April lows but have begun to come under pressure. The price is fighting to hold the 50-day SMA (5638), but if momentum turns decisively downwards then we could see much of this bounce unwound. Alternately the price needs to clear 6050 to target 6500 and the late April peak.
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