Grains and Agricultural Futures Sideways Ahead of the US National Crop Report

Agricultural commodities including soybeans, corn and wheat are trading mostly sideways as investors are waiting for the US national crop report to check how planting and emerging details are.
Mauricio Carrillo
Grains and Agricultural Futures Sideways Ahead of the US National Crop Report
Grains and Agricultural Futures Sideways Ahead of the US National Crop Report

Soybeans, wheat, and corn are trading mostly sideways on Tuesday as investors are waiting for a new release of the weather and crop report in the United States.

Traders are expecting more progress in the planting and a better forecast for the weather in the next week. However, the focus is now turning to the crops emerging and next steps of the season.

Agricultural trading report

Soybeans are trading in a small range between 8.460 and 8.490 with brief adventures to the down and upside. The bushel os trading negative for the fourth time in the last five days and extending losses after Monday’s rebound from 8.410.

Corn is falling again on Tuesday after Monday’s recovery, but overall, the unit is negative and it looks ready to trade below the 4.000 area for the first time Since May 28.

Wheat is trading near to the psychologic 5.000 again. The unit remains to trade in a wide range between 4.800 and 5.200 since May 24. The 200-day moving average supports wheat.

Sugar is testing the 0.1240 area again on Tuesday, but as it happened in the last five trading sessions, the level remains firm. Today sugar was rejected and fell to 0.1220, but it recovered ground to the 0.1240. Will it break it? Time will say, but the production remains weak.

Coffee is trading negative for the second day in a row with the Futures of Coffee breaking below the 100.00 area and testing the 98.00 level, lowest since May 29. Coffee prices are expected to continue falling at least to 96.25, where the 20-day moving average and highs from April and May lies.

Soybeans flat ahead of US crop national report

Soybeans June 11 daily chart

Soybean is trading flat on Tuesday after the bushel recovered ground from 8.438, but the 50-day moving average contained the movement. The unit is now trading at 8.509, 0.10% negative on the day.

Recent forecasts about more temperate weather in the midwest of the United States are lifting planting progress expectations, sending soybeans prices lower.

However, the market wants to check how planting is advancing for sure, and today’s report from the US Department of Agriculture will show it.

The forecast is another crucial point in the report as it will show the expectations for rains and storms in the next week.

Now, the market is turning focus into the emerging steps, and it will be late just ahead of an imminent summer and hot temperatures.

In this framework, Soybeans remains trading sideways, but the catalyst is just coming. To the upside, the unit will see resistances at the 200-day moving average at 8.700 and then the 8.800 area.

To the downside, 8.400 is the first support, then, 8.320 and 8.000 are the levels to watch.

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