Grains to Close June With Gains Amid Complicated Weather

Weather is still a concern for agricultural investors as heavy rains remain in the farm belt of the United States, but dry conditions in Canada. Also, hot temperatures in Europe and a weak monsoon season in India are raising concerns about a grains supply crisis in the months to come.
Mauricio Carrillo
Grains to Close June With Gains Amid Complicated Weather

Grains are trading positive on Friday ahead of the well-waited meeting between Trump and Chinese president Xi this Saturday.

Agricultural futures have performed with benefits in the week and month, but gains are now limited due to month-end rebalancing as investors want to take profits and include it on their books.

Weather is still a concern for agricultural investors as heavy rains remain in the farm belt of the United States, but dry conditions in Canada. Also, hot temperatures in Europe and a weak monsoon season in India are raising concerns about a grains supply crisis in the months to come.

India experiences weak monsoon rains

In India, monsoon rains were below average for the fourth consecutive week according to reports. Besides, the forecast is expecting the conditions to last in the short term.

As monsoon is crucial for Indian farmers, weak rains are raising concerns about the farmers’ production and the country economy. Agriculture means 15% of the global Indian economy.

With weak monsoon, sugar and other grains are getting delays in the crop. So sugar prices are hot.

Grain prices report for June 28

Soybean found support at the 20-day moving average level on 8.823 on Thursday, and the unit is now trading 0.50% positive at 8.900 on Friday. The unit is closing its first negative week in the last three as the oilseed was unable to break above the 9.150 for a second consecutive week.

On the month, Soybeans prices performed its second period of gains, and it extended its recovery from 7.790, May minimum reached on May 13, to test the mentioned 9.150. Soy is closing the quarter with a 1.75% gain since April.

Corn is ready to close its third positive month in a row as the grain is trading at 4.360, 4.0% positive in June. However, monthly gains were moderated after the unit is closing its second week with losses. Corn is 0.75% down on the week, and finishing Friday with a 0.21% daily decline.

Wheat is trading in consolidation mode on Friday as investors are taking profits after the unit jumped to highs since August 2018 at 5.510 on Thursday. Currently, prices of wheat are moving around 5.380, 1.15% negative in the day.

Weekly, wheat is advancing 2.85% in the last five trading days, ready to close its five weeks of gains in the previous seven. The unit is also closing its second month of benefits as the bushel is performing 8.0% positive in June.

Coffee is trading positive for the fourth consecutive day as the unit is consolidating levels above 106.00. Coffee is ready to close its second week of gains in a row, as well as its second month of profits. It is essential for the grain that the unit is finishing the week and the month above the 100.00 level. However, be aware that it could be due to month-end rebalancing.

Sugar consolidates gains above 0.1250

Sugar is posting gains on Friday for the second day in a row as the unit is consolidating levels after the rally performed on Thursday. The unit is positive due to weather problems in India.

Currently, sugar is trading 0.24% gains on Friday as it is moving at 0.1255. On the week, sugar is posting gains as it has almost recovered all losses suffered in the previous week. This would be its fifth week of gains in the last six.

On the month, sugar is closing its first month of gains since February. June is ready to finish 5.27% positive as the unit extended its recovery from May’s lows at 0.1115.

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