Agricultural futures are trading down on Tuesday as investors are digesting the USDA crop report. Also, traders are more willing to buy equities today.
The United States Department of Agriculture reported weak progress in the crop report last week. However, improved weather is pondering the news.
On the other hand, China’s official Xinhua news agency reported that Chinese companies are seeking new purchases of U.S. agricultural products.
Soybeans down for the second day
Soybean is trading down for the second day as the unit is extending its rejection from the 9.000 area tested on Monday and Tuesday.
The USDA crop report wasn’t good this week as soybeans were reported 54% in good or excellent conditions, unchanged from the previous week, but considerably below the 70% reached at this time in 2018.
Currently, the oilseed is testing the 200-day moving average at 8.775 and posting a 0.77% daily decline.
Technical conditions are weak for the bean, with the 8.700 and 8.660 as next supports below the mentioned 8.775. Then, soybeans will have freeway to June 10 lows around 8.400.
To the upside, bulls need to maintain the unit above the 8.700 before thinking for a possible rebound. Resistances are at 9.000 and 9.150.
Corn extends decline and trades below the 50-day moving average
Corn is trading down for the second straight day as investors are digesting a bad crop report on Sunday.
According to the U.S. Department of Agriculture, corn crop was rated 57% good or excellent the last week, down from 58% rated the previous week. Also, well below the 72% rated good or excellent at this time in 2018.
In this framework, corn prices are extending its decline for the second day, and it is now testing the 50-day moving average at 4.150. Currently, CORNUSD is falling 0.50% on the day at 4.148.
Technical conditions for the grain remains weak the chart also suggesting more declines in the days to come. Next supports are at July 1 and 2 lows at 4.050, and June 6 minimum at 4.000. Then, the grain will have a freeway to 3.900.
To the upside, the unit needs a close above 4.200 to give hope to bulls. Above there, 4.300, 4.500, and 4.600 are the frontiers.
Wheat also negative, tests 4.800
Prices of wheat are extending declines for the second day with the unit consolidating losses below the 4.900 area and even testing the 4.800 level.
The crop report showed that 76% of wheat spring crop was rated good or excellent, unchanged from the previous week. The wheat situation is not that bad as the rate was just below the 79% rating at this time of 2018.
Currently, wheat is trading at 4.798, 0.77% negative in the session. The unit will find supports at 4.700 and 4.600. Below, the 4.400 will be the possible buying zone.
This article was originally posted on FX Empire
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