Pro Farmer Crop Tour Lower Expected Acre Yields, Grains MixedTechnically, corn futures looks heavy and studies are signaling more room for the downside with the 3.60 area as the next critical support. Below there, please check the 3.50 and 3.40 levels as essential zones of buying.
The Pro Farmer Crop Tour reported lower acreage yield estimates than the previously reported by the WASDE report. Investors have a hard time digesting the information and to decide which information they do believe.
Meanwhile, prices of grains are trading mixed as they attempted to post gains but were unable to sustain levels. Only soybean is adding gains on the day.
Corn trades sideways but looks heavy
Corn is trading in consolidation mode after a rejection of the 3.80 level that sent the unit to 3.68 on Tuesday. Today, the bushel of corn is trading at 3.70, which is 0.35% positive on the day.
Investors are digesting the divergences between the WASDE and Pro Farmer Crop Tour reports about the acreage yield.
Technically, corn futures looks heavy and studies are signaling more room for the downside with the 3.60 area as the next critical support. Below there, please check the 3.50 and 3.40 levels as essential zones of buying.
On the other hand, any bullish intention will have a hard time trying to break above the 3.80 area as it is now working as a strong resistance. In the case the bushel of corn breaks above that price, 3.87 will be the next level to watch.
Long story short, corn trades sideways, but it looks ready to extend declines.
Wheat extends declines to three-month lows
Wheat is trading down for the third day in a row as the unit is extending its decline from the 4.77 area started on August 19. Today, the unit fell to 4.60, its lowest level since May 16.
Currently, futures of wheat are trading at 4.62, 0.70% negative in the day. Technical conditions suggest more room for the downside with the 4.55 as the next support that the grain would face.
Below there, please check the 4.50 level and then 4.45, 4.35, and 4.27 as supports.
To the upside, the odds are limited, but any recovery in the grain would need to break the 4.77 level. A consolidation above that area would open the door for more gains until the unit faces a new resistance at 4.85. Then, check the 5.00 and 5.07 levels for selling pressure.
Soybean recovers two days of losses
Soybean futures are trading positive on Wednesday as investors are digesting Pro Farmer Crop Tour reports. The unit is recovering two days of losses, and it is now testing intra-week highs at 8.77.
Currently, soybeans are moving t 8.75, 0.81% positive on the day. Technical indicators are mixed, so investors don’t expect a significant movement in the oilseed. Nevertheless, a break above the 8.80 area would open the door for more gains.
Above 8.80 per bushel, soybean will find the next resistance at 8.85, then 8.95 and the psychological 9.00 level.
To the downside, the unit needs a close below 8.65 to give bears hope for more declines. Then, 8.55 would be the immediate support, followed by the 8.44 critical level.