Corn Jumps to highs since July 2015 amid Weather and ChinaCorn prices are rallying to its highest level since 2015. Wet weather and news that China will reduce corn sales are fueling the grain.
Agricultural futures are trading higher on Thursday as investors are digesting crop reports and weather forecasts for the next days. Also, China has announced it will stop selling corn.
Corn is trading at highs in near 4 years, while Wheat is at maximums since August 2018. A mix of the trade war, bad weather, and concerns about the supply of grains are pushing them up.
Agricultural futures report for June 13
Corn is trading for the fourth consecutive day on Thursday with the bushel breaking above the 4.37 level before trading as high as 4.45, its highest levels since July 2015.
Soybeans are also extending gains following Wednesday break above the 200-day moving average at 8.702. It is currently testing the 8.800 area.
Wheat is advancing for the fourth day in a row with the unit jumping to fresh highs since August 2018 at 5.300 on Thursday. Wheat is currently in consolidation mode, but technical studies suggest more gains in the short term.
Coffee is alive on Thursday, and after three days of declines, it is recovering ground above the 100.00 area. Coffee futures are currently trading at 101.40.
Sugar continues with its rally after breaking the 0.1240 level on Tuesday. After three days of gains, sugar is currently trading at 0.1265, its highest level since April 25.
More wet weather expected
Although the latest USDA National Crop report informed that planting was making progress in the midwest of the United States, investors are concerned about the future of the season as more rains are expected for the next days.
As Global Agriculture Columnist at Thomson Reuters, Karen Braun, tweeted recently about the 7-day precipitation forecast, “still has the heavy rain for the Eastern Belt, which has already had a very difficult time planting corn and soybeans. This could unfortunately end a lot of those efforts.”
China to reduce corn sales
Besides, Bloomberg reported this morning that China was considering slashing corn sales as its stockpiles were falling hard to levels not seen in 7 years.
The measure comes in the middle of a trade war between China and the United States, and it raises concerns about how much time can the Asian giant face the conflict.
Same story in the United States, where farmers see how their planting season is well delayed by wet weather. A global grains supply crisis is on the table, making prices go higher.
Corn futures jump to highs since 2015
In another session of gains, corn broke the 4.38 level to trade as high as 4.45 per bushel, its highest level since July 2015.
The unit is trading positive for the fourth day in a row as investors are digesting reports on more wet weather and news that China will slash corn sales.
Currently, corn is trading at 4.39 per bushel, 2.09% positive so far on Tuesday. On the week, corn is performing a 5.65% rally. Above the 4.45, next resistances are at 4.55 and 4.75.