Corn Prices Continues its Collapse, Soybean Maintain LevelsCorn was rated at 57% good to excellent, the same of the previous week. Soybeans were 54% good or excellent, again, the same as the last week. Finally, winter wheat harvest is 89% completed, lower than the 96% at this time in the previous five years.
Grains such as corn and wheat are trading down on Tuesday after the WASDE report showed an improved forecast for the production of both agricultural products.
On the other hand, soybean showed little progress, keeping the unit inside its previous range.
Besides the previously commented WASDE report, the USDA’s weekly Crop Progress Report was also released Monday. It mostly showed stable crop conditions.
Corn was rated at 57% good to excellent, the same of the previous week. Soybeans were 54% good or excellent, again, the same as the last week. Finally, winter wheat harvest is 89% completed, lower than the 96% at this time in the previous five years.
Soybean keep levels and try to recover ground
Soybean is trading positive on Tuesday as it is trying to recover some of the ground lost on Monday. However, it is off highs of the day as the unit was unable to break above 8.80.
Currently, soybean prices are at 8.69 per bushel, posting 0.35% gains so far on the day. Technical conditions signal more increases yet, but the recent WASDE report was a game-changer with updated acreage and situation report.
To the upside, soybean is being contained by the 8.80 resistance. Above there, please check for the 8.90-9.00 area.
To the downside, the unit needs to break below the 8.63 level to confirm more dovishness. Below there, 8.50 and 8.44 are the levels to watch.
Corn prices extend collapse on Tuesday
Corn is extending its collapse on Tuesday as investors are digesting an improvement in the maize situation after the WASDE report published yesterday.
More acres and a better yield are offsetting fears for corn supply. So, investors are selling their futures contracts. On Monday, the unit dropped 6.1%, its worse day in years, and it Tuesday the situation is not different.
Corn is currently trading at 3.70, performing 3.65% daily losses and trading near to its lowest level since May.
Technical and fundamental pictures are signaling for more declines with the 3.70 level as critical support. Below there, please see for the 3.67 and 3.60 as buying zones.
Wheat tests near 3-month lows
Wheat is extending declines for the second day after the WASDE report published better than expected numbers. After two days of drops, the unit has lost 6.9% of the value, and it is currently trading at 4.66 per bushel, its lowest level since May 17.
Technical picture remains weak and favoring the downside. So, watch the 4.55 and 4.45 levels as next supports. Below there, 4.30 and 4.20 are critical buying zones.