Barter war conflicts have caused soybeans to suffer this year, but after a 10 percent swell in the last month, one trader expects the rally to continue to grow.
Invoice Baruch, president of Blue Line Futures, told CNBC’s “Patron Nation” on Tuesday that he has a bullish outlook on soybeans and China. Here is what he had to say:
· The biggest mishap from China’s retaliation to the U.S. tariffs was soybeans.
· Soybeans lost as much as 22 percent from the May 29 turned on through the July low, their worst levels since December 2008, previous stabilizing.
· Soybeans are extremely undervalued at $9 a bushel because China doesn’t start humouring its largest purchases until October and there is light at the end of the tunnel for this war.
· The modern swing higher and breakout of a cup and handle pattern is even more consequential, this level aligns three separate proprietary technical indicators and a painstaking above 9.23 a bushel is extremely bullish.
· We want to be long soybeans on 9.23.
Soybean futures were trading around 9.13 a bushel on Wednesday.