Grains go profit taking; Coffee up to 2019 highs, sugar rallies amid monsoon rains

Soybeans and corn are trading down as investors are closing positions ahead of the end of the quarter. Coffee, wheat, and sugar jumped to highs on Thursday. All about weather conditions.

Prices for grains are supported by wet weather in the United States, hot temperatures in Europe, a lower than expected plating in Canada and heavy monsoon rains in India.

Soybeans down amid profit taking

Soybean prices are falling for the third day on Thursday as the unit is extending its rejection from the 9.100 area and investors are closing positions ahead of the end of the quarter.

Currently, soybean is trading at 8.870, 0.45% down on the day. Technical indicators suggest more room for the downside in the short term. However, the fundamental picture still supports higher prices amid weather conditions.

To the downside, the oilseed will face supports at the 8.810 area, the 200-day moving average level at 8.740 and the June 10 low of 8.410. To the upside, 9.150 is the resistance to watch.

Grains report for June 27, 2019

Corn is extending losses for the second day in a row as investors are closing positions ahead of the end of the quarter. The grain remains inside the range between 4.340 and 4.500 that it has been trading since June 18. Currently, corn is moving at 4.380, 0.60% down on the day.

Wheat jumped to 10-month highs on Thursday at 5.510; however, the unit found an active selling zone where investors started closing positions, taking wheat to 5.355 per bushel.

Currently, wheat is trading at 5.370, 0.70% down on the day. Technical conditions talk about a short term decline, but the chart pattern shows a strong uptrend on the play. Be careful of end-quarter rebalancing.

Sugar is rallying on Thursday as investors are digesting news from India that monsoon is covering most parts of the country.

Also, a technical rebound from the 0.1205 level is fueling the move that got extra traction after it broke the 0.1240 area. Currently, sugar is trading at 12.50, 3.85% positive on the day.

To the upside, sugar needs to close above the 0.1250 area to make the run sustainable. Above there, next resistances are at 0.1270 and 0.1280.

Coffee is extending gains for the third day on Thursday with the grain jumping to test the 2019 highs at 108.20. Currently, it is trading at 106.55, 0.15% positive on the day.