Corn Rallies to Highs Since 2014 and is ready to Close Its Best Week Since June 2015Corn is trading at highs since June 2014 and also performing its best week since 2015 with 9.1% of weekly gains.
Corn futures are rallying even more on Friday as investors are digesting news about planting delays and a possible supply crisis in China. Investors are buying corn bushels at high rates.
Global farmers and analysts are concerned about the upcoming harvesting season. Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia, affirmed that “with so much late planting this season, the tail on weather threats to this US corn crop will run well into the northern (hemisphere) autumn.”
Also, as reported previously in FX Empire, the United States Department of Agriculture cut by around 9% its forecast of US corn season.
Corn is raising in this perfect storm as well as other grains also impacted by weather and trade war woes.
Agricultural futures report for June 14, 2019
Soybean is trading positive for the third day as the unit is extending highs since April 16 at 8.896 on Friday. The unit is ready to close the week with substantial gains that are recovering previous week’s losses.
After breaking above the 4.38 resistance on Thursday, corn is extending gains well above that level as the price per bushel is trading as high as 4.51, its highest level since June 2014. In the week, corn is closing one of the most significant weekly gains in years with a 9.1% increase.
Wheat is extending gains on Friday after its futures broke above the 5.30 area on Thursday. The bushel of wheat jumped to reach a fresh high since September 4, 2018, as the unit is testing the critical 5.40 area.
On the week, wheat is closing its fourth positive week in the last five as it is completing a recovery from the 4.20 area started in the second week of May.
Coffee got a rejection at the 200-day moving average at 102.30 that stopped its recovery from 99.40. Now, the grain is trading down 1.43% in the day at 99.94. On the weekly chart, futures of coffee are posting its second week of declines.
Sugar is extending its gains for the fourth day after breaking the 0.1240 crucial level. It is now testing the 0.1270 area, highs since April 25, 2019. On the week, Sugar is about to close its fourth positive week in a row.
In the last four weeks, sugar has gained 13.5% of value from 0.1115 per unit to current highs at 0.1270.
Corn perfect storm pushes prices to highs since 2014
Futures of corn are trading at highs since June 2014 as investors are worried about an ugly corn season in the United States, plus a supply problem in China, that decided to cut its corn sales because its stockpiles were at minimums.
In this framework, corn is trading 2.65% positive on the day at 4.53, multi-year high as mentioned before.
On the week, corn futures are closing its weekly gain since June 2015 as the unit is performing 9.10% positive in the last five days.
Most important is that corn broke a multi-year double top resistance at 4.45. It is now facing a new resistance at 4.55, but it looks minor after what the grain accomplished this week. 5.00 is the frontier now.