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Mauricio Carrillo
Grains up on Weather and Political Factors, Coffee Jumps to Highs Since Feb
Grains up on Weather and Political Factors, Coffee Jumps to Highs Since Feb

Grains such as soybeans and corn are trading positive on Wednesday as investors are digesting improved weather forecast but concerns about the harvesting season.

Also, climate problems in Canada, Russia, and China are fueling fears of a supply crisis in the months to come. Not only soybeans, corn or Wheat, but the whole grains market.

Soybeans on sideways


Soybeans June 26 Daily chart

Soybean is trading down for the second straight day as investors are digesting improved weather forecast and a technical rejection from the 9.150 level. On Wednesday, soybeans are testing the 8.900 area for the second day in 1 week.

Currently, the oilseed is trading 0.24% negative at 8.950. The unit is now testing the bottom side of the range between the mentioned 8.900 and the 9.150 level it has been trading since June 17.

To the downside, in the case soybean breaks below the 8.900 level, it will find resistance at 8.800, late May highs, the 200-day moving average line at 8.735, and the 50-day MA at 8.530.

Grains investing report for June 26

 Corn is recovering from an early drop on Wednesday, and it is now near to flat around 4.430. The grain is digesting reports on improved weather but still concerns about the emerging season and the final harvest.

On the big chart, prices of corn are now moving in a range between 4.400 and 4.500, consolidating levels after a rejection from multi-year highs at 4.600 reached on June 17. Technical indicators are mixed with moving average aligned to the upside, but momentum and oscillator indicators are signaling more correction.

Wheat, on the other hand, has resumed its uptrend after a brief setback performed on Tuesday. The grain is now trading 1.30% positive on the day at 5.400. It is heading to test yesterday’s high at 5.430, and 11-high at 5.450 reached on June 17.

Technical indicators suggest more room for the upside with moving averages turning positive and RSI and MACD signaling sustainable gains.

Sugar is falling on Wednesday as the unit was unable to extend recovery beyond 0.1240. Previously, sugar stopped a 5-day decline at 0.1210 on Monday, and it started a recovery that was, however, capped at 0.1240. It happened again on Tuesday and Wednesday.

The odds are now pointing to the south with technical indicators mixed but most aligned to the downside.

If the pair finally couldn’t break above the 0.1240, it will extend its rejection to the mentioned 0.1210 area, and below there, sugar will find support at 0.1180 and then 0.1135. The last frontier lies at 0.1120 for now.

Coffee jumps to near 5-month highs

Coffee is rallying for the second straight day on Wednesday as the grain broke above the 106.40 area to trade as high as 108.00, its highest level since February 7.

In the last two days, futures of coffee has advanced over 6.5% from the 100.00 area to the current 106.40 area, where the pair is fighting to maintain gains above previous highs.

Technical indicators are pointing for more gains in the short and middle term. To the upside, if coffee maintains levels above 106.40, it will extend benefits to breaking above the 108.00 area. Then, the psychologic 110.00 area and the 111.10 level will be the frontier.

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