Grains up amid profit taking and cheap purchases

Grains are trading positive on Friday but are set to post significant weekly losses. Corn, as a sample, is performing its worst week since June 2016. Soybean movements have been moderated comparing with corn and wheat.

Profit taking is the theme of the day; also, some revival in risk appetite and corn long interest due to low prices per bushel.

Corn positive on Friday as profit taking rebalancing

Corn is moving up on Friday as investors are closing short positions ahead of the weekend. Also, buyers are taking positions on cheap grains. However, the week has been ugly for corn, and it is ready to close its worst week in 3 years.

Prices of corn are trading 1.32% positive at 3.65 on Friday as the unit is extending its rebound from the 3.59 area traded yesterday. On the week, the unit is falling 10.85% in the period. Its worst week in years, and also its fourth negative week in the last five.

Technical conditions are suggesting an undergoing recovery in the short term as the price fell too much too fast. The resistance is now at 3.70. Above there, 3.80 per bushel and then the 3.87 area.

To the downside, a break below the 3.60 area will open the door to a test of April lows at 3.55, and then 2019 lows at 3.43, traded on May 13.

Wheat consolidates lows on Friday

Wheat is trading slightly positive on Friday as they are closing positions ahead of the weekend. It is currently moving at $4.71 per bushel, 0.43% positive on the session.

However, wheat is falling 5.71% on the week, its most significant weekly decline since February.

Technical conditions remain depressed for the grain, with the 4.70 as essential support. Bellow there, 4.65 is the next level to watch. Then, 4.56, 430, and 4.20 are the potential buying zones.

Soybeans positive after two negative days

The case of soybeans is not as much dramatic as corn and wheat. The move in the oilseed has been more moderated that the other two grains with potential weekly losses of 1.56%.

On the day, soybean is trading at 8.65 per bushel, 0.85% positive after the unit bounced back from 8.58 on Thursday. The 8.70 area now contains the unit.

Technical conditions suggest more room for the downside, so, market could assume that today’s movement is due to profit taking. Watch out for the mentioned 8.58 as first support. Then, 8.50 and 8.40 as buying zones.