Grains Consolidate Levels Amid Improved Market Sentiment

Consolidation day for grains on Tuesday as investors are still digesting WASDE report, improving weather conditions for the next days in the United States and better export prices in America.

Prices for exportations in agricultural products rose 0.4% in July, better than expected. Also, a jump of 3.7% in agricultural exported prices in the last 12 months to July has lifted sentiment. It was the highest advance since June 2017.

Corn consolidates lows

Corn is trading in consolidating mode after performing two days of heavy losses amid improving expected production and the WASDE report. Just on the week, futures of corn has lost 10.6% of its value from Monday’s opening at 4.09 per bushel to current 3.66.

On the day, corn is trading 0.14% positive at 3.66, just after bouncing at 3.64, its lowest level since May 14, but the move was capped at the 3.70 level.

Technical conditions remain weak for the unit, and more declines are expected. Besides, improved weather conditions are hurting prices too. Next supports are at 3.60, 3.50, and 3.40 level.

To the upside, the expectation for rises is low. Any recovery should get a close above the 3.70 area. Then, 3.80 and 3.90 are the resistances.

Wheat tries its second day of recovery, but advance is minimal

Futures of wheat are trading positive on Wednesday after closing Tuesday with small gains. However, today it seems to be the same situation of yesterday with the unit capped by the 4.80 level.

Currently, wheat is trading at 4.75, 0.69% positive on the day. The unit is in recovery mood from lows since May 17 at 4.65 reached on Tuesday. However, the grain is still 4.90% negative in the week.

Technical conditions remain weak for the unit with the mentioned 4.65 level as first support. Then, 4.55 and 4.50 as buying zones.

To the upside, 4.80 is the immediate resistance; above there, the price needs a close above the 5.05 level to confirm recoveries. Then, 5.30 will be the most significant level to beat at the upside.

Soybeans down but it range

Soybean prices are trading down on Wednesday as the unit was unable to break above the 8.80 level. However, the unit remains trading sideways just above 8.70 per bushel.

Technical conditions are showing some exhaustion on the upside and a potential decline in the next days. With a weekly where other grains have suffered significant losses, soybeans are sustaining prices mostly due to stable conditions for expected supply.

However, overall improved market sentiment regarding the production of the season will eventually send prices down.

To the downside, 8.70 is the first support. Then, 8.63, and 8.50 are the next frontiers before the 8.40 area, where the minimum of August 5 lies.