South African Soybean Futures Advance After Being ‘Oversold’
South African soybeans rose the most in a month after traders deemed recent declines excessive.
Soybeans for March, the most active contract, advanced 1 percent to 4,840 rand ($564.54) a metric ton on the South African Futures Exchange by 12 p.m. in Johannesburg. That’s the biggest one-day gain since Nov. 22. The active contract declined to a five-month low on Dec. 21, when it closed at 4,790 rand.
Soybeans’ 14-day relative strength index was below 30 on Dec. 20 and 21, signaling to technical analysts it’s undervalued and poised to rebound.
“Soybeans have fallen in recent local trading,” Brink van Wyk, a trader at BVG (Pty) Ltd., said by phone from Pretoria. “They were oversold.”
White corn for delivery in March fell 0.9 percent to 2,172 rand a ton, its lowest level since June 19. Yellow corn rose 0.3 percent to 2,104 rand.
To contact the reporter on this story: Jaco Visser in Johannesburg at email@example.com
To contact the editor responsible for this story: John Viljoen at firstname.lastname@example.org