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Grains Resume Downtrend After The USDA Export Sales Report

By:
Mauricio Carrillo
Published: Aug 15, 2019, 16:30 UTC

Despite there are still concerns about the health of the farm season, improved weather and fewer supply concerns are pushing prices down. Besides, the USDA export sales report showed improvement in the market around the world.

Grains Resume Downtrend After The USDA Export Sales Report

Grains such as soybeans, corn, and wheat are trading down on Thursday as investors are still digesting improved production forecast in the WASDE report and now watching the export sales numbers from the USDA.

Despite there are still concerns about the health of the farm season, improved weather and fewer supply concerns are pushing prices down. Besides, the USDA export sales report showed improvement in the market around the world.

USDA Weekly Export Sales report highlights:

Check the highlights from the USDA weekly export sales report.

Soybeans: Net sales reductions of 109,900 MT for 2018/2019 were down noticeably from the previous week and from the prior 4-week average. China led the reductions. For 2019/2020, net sales of 817,400 MT. Exports of 1,111,700 MT were up 16 percent from the previous week and 30 percent from the prior 4-week average. China was a critical buyer.

Wheat: Net sales of 462,200 metric tons for 2019/2020 were down 5 percent from the previous week and 2 percent from the prior 4-week average. For 2020/2021, total net sales of 12,300 MT were for unknown destinations. Exports of 636,900 MT were up 73 percent from the previous week and 63 percent from the prior 4-week average.

Corn: Net sales of 56,100 MT for 2018/2019 were up 32 percent from the previous week, but down 56 percent from the prior 4-week average. For 2019/2020, net sales of 307,600 MT. Exports of 707,900 MT were up 2 percent from the previous week and 7 percent from the prior 4-week average.

Soybeans down for the second day

Prices of Soybeans Daily Chart August 15
Prices of Soybeans Daily Chart August 15

Futures of soybeans are trading down for the second day in a row as investors are digesting lower export sales of the oilseed in the United States.

On Thursday, soybeans extended declines from the 8.80 level traded on Wednesday to intra-day lows around 8.58 per bushel. Currently, Soybeans are trading at 8.60 per bushel, 0.61% down in the day.

Technical analysis are showing selling conditions with the chart pattern suggesting more room for the downside. Below the 8.60 level, next support will be the 8.50 area and then the 8.40 frontier.

To the upside, the unit needs a close above the 8.80 level as a primary condition to recover the bullish stance.

Corn looks ready to extend losses

Futures of Corn Daily price August 15
Futures of Corn Daily price August 15

After attempting to recover ground, corn prices returned to the negative field with the grain trading below the 3.60 level at 3.58, which is 0.05% down in the day.

Despite there are still concerns about the health of the corn season, improved weather and fewer supply concerns are pushing the unit down. Besides, the USDA export sales report showed improvement in the corn market around the world.

Technical conditions remain weak for corn, and the chart pattern suggests more losses in the short term. Watch 3.55, 3.40, and 3.38 as supports.

Wheat resumes its decline

Daily chart Wheat August 15
Daily chart Wheat August 15

After two days of recovery intentions, it seems that wheat buyers are giving up as the unit was unable to trade above the 4.80 area. On Thursday, futures of wheat are trading 0.70% negative at 4.70.

The unit seems ready to do a retest of the 4.65 level, August 13 low. Technical conditions remain weak for the unit, and the chart pattern is showing a brief period of consolidation undergoing as a preparation for further declines in the short term.

Below the 4.65, check for the 4.60, 4.55, and 4.50 as potential buying zones.

About the Author

Mauricio is a financial journalist with over ten years of experience in stocks, forex, commodities, and cryptocurrencies. He has a B.A and M.A in Journalism and studies in Economics by the Autonomous University of Barcelona. While traveling around the world, Mauricio has developed several technology projects focused on finances and communications. He is the inventor of the FXStreet Currency Poll Sentiment index tool.

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