Corn Jumps to highs since July 2015 amid Weather and China

Corn prices are rallying to its highest level since 2015. Wet weather and news that China will reduce corn sales are fueling the grain.
Mauricio Carrillo
Corn Jumps to highs since July 2015 amid Weather and China
Corn Jumps to highs since July 2015 amid Weather and China

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

Corn daily chart June 13

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.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US