Grains Advances Amid USDA Weak Crop Report, But Key Levels Contain Gains
Grains such as soybeans, corn, and wheat are posting gains on Tuesday. Investors are digesting a USDA crop progress report that came short of expectations. However, the units have found strong resistance and increases are limited.
According to the National crop progress report released by the United States Department of Agriculture on Monday, US crop conditions deteriorated last week following rain.
The USDA is expecting a weaker than previously expected harvesting. It can be worse if the emerging grains don’t go as planned due to hot conditions in summer. The situation is supporting higher grains prices.
In a report with Reuters, Matt Ammermann, commodity risk manager with INTL FCStone, said that “corn, wheat, and soybeans are being supported today by the disappointing crop condition and sowings figures from the USDA.”
Besides, “wheat is also underpinned by concern about the heatwave in parts of Europe,” Ammermann said.
Remember that Europe is facing a hot wave that will last until the next week.
Grains report for June 25, 2019
Soybeans are trading down on Tuesday as the oilseed was unable to break above the 9.150 level and it retraced to move just above the 9.000 area.
Previously on the day, Soybeans rose to test the 9.150 area amid a disappointing USDA crop progress report. Although the unit was unable to extend gains beyond that level.
Currently, the bushel of soybeans is moving at 9.042, 0.07% negative on the day.
Corn is extending gains for the second day with the unit testing the 4.500 level. The grain is advancing amid a weak crop progress report released on Monday. However, the movement is not too big as the unit remains contained by the mentioned 4.500.
Currently, corn is trading 0.47% positive on the day at 4.460. The unit has been trading in a range between 4.330 and 4.500.
Technical studies are mixing greens and red signals. However, the chart pattern suggests a bullish continuation at least until 4.600.
Wheat is down on Tuesday after the unit attempted a jump to test the 5.445 level, but it failed and it was sent to trade just above the 5.300 area.
Sugar is extending is recovery from 0.1210 traded on Monday to test the 0.1240 level on Tuesday. Currently, it is trading 0.82% positive on the day at 0.1230. Sugar is on recovery mode this week as it lost 4.2% of its value the last period.
Futures of coffee accelerated on Tuesday after a setback performed on Monday as the 200-day moving average rejected the unit at 102.20. On Tuesday, coffee jumped 3.5% on the day to break above the mentioned 200-day MA and to trade as high as 103.75, the highest level since June 5.
This article was originally posted on FX Empire
