Corn, Wheat and Soybeans Rally on Lower Grains Forecasts

Wheat, corn, and soybeans are rallying on Wednesday as investors are digesting USDA forecast cut to put prices up.
Mauricio Carrillo
Corn, Wheat and Soybeans Rally on Lower Grains Forecasts
Corn, Wheat and Soybeans Rally on Lower Grains Forecasts

Grains prices such as soybeans, corn, and wheat are rallying on Wednesday as investors are digesting the recent USDA national crop report, including a cut in 2019 season forecast on midwest flooding.

The US Department of Agriculture reported that despite some improvement in the planting season, severe weather has put planting progress at its slowest pace on record. The USDA is now expecting domestic corn yields to be the lowest since 2013.

USDA is now expecting 13.68 billion bushels of corn, 9% below previous projection. Experts expect more cuts in the weeks to come.

Grains report for June 12

Soybeans are rallying on Wednesday with the bushel breaking above the 200-day moving average and trading as high as 8.753, its highest level in a week.

Corn is extending gains on Wednesday with the pair testing may-end highs around the 4.300 area. Technical conditions are strong for a continuation. Wheat jumps for the third day in a row to trade at 5.235, the highest level since February 6.

Sugar finally broke above the 0.1240 area on Tuesday with the unit extending gains on Wednesday and trading at 0.1245, its highest level transacted since April 25.

Coffee futures, on the other hand, attempted to trade positive on Wednesday but it got a rejection at the 200-day moving average at 102.35, and it was sent back below the 100.00 area.

Corn ready to test 4.300

Prices of corn are trading higher for the third day after the USDA cut its forecast production of corn for this season.

The revision of the forecast is supporting the movement to the upside as experts are also expecting more reduction in USDA forecast.

In this framework, corn is adding 1.4% of value on Wednesday as it is pricing at 4.263. In the last three days, the grain has advanced near to 6.5% from June 10 low at 4.030 to today’s highs at 4.285.

If the unit is able to break above the 4.300 resistance, it will find next resistance at 4.355, June 2016 highs.

Wheat also tests highs

Wheat daily chart June 12

Prices of wheat are trading higher on Wednesday for the third day in a row as investors are digesting the USDA crop progress report.

On Wednesday, wheat jumped to reach fresh highs since February 6 at 5.235. Then, the unit tempered its gains and returned to trade at current levels around 5.185, 1.10% gains on the day.

Technical studies suggest more room for the upside with the 5.250 as immediate resistance. Above there, check for 5.400 area and 5.550 as most significant buying zones.

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
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