Soybean and Corn Lose Steam And Ease Rallies

Soybeans and corn are trading in consolidation mode as investors are waiting for mode developments in the agricultural investing market.
Mauricio Carrillo
Soybean and Corn Lose Steam And Ease Rallies
Soybean and Corn Lose Steam And Ease Rallies

Soybean and corn prices are trading on consolidation mode this week after several days of gains amid wet weather and concerns about planting and emerging crops season.

The market is trading quietly as investors are more focused on the FOMC meeting and a possibility that the Federal Reserve can hint a rate cut in July.

As reported earlier in the day by FX Empire, the Fed would drop the “patient” world from its statement in an apparent reference for a cut in July.

With all eyes on FOMC today, investors are in wait-and-see mode and avoiding any risk before the event.

25% of US Soybeans crop remains unplanted

The last US Department of Agriculture’s Crop Progress Report released this week showed that nearly 75% of soybean is planted in the United States, 20% slower than the 5-year average.

Corn planting was reported to be 92% completed, below the 100% 5-year average. Corn emerging is nearly 20%, also slower than the average in the last five years.

As the focus is changing from planting to emerging, investors are in profit taking before new news.

According to Jason Roose, U.S. Commodities analyst, “grains are mixed today with corn leading the way lower in a risk off trade profit-taking Tuesday.”

“Also, poor exports and an unchanged crop condition rating on corn were enough to limit the current rally. Volatility is still high on uncertainties on acres and conditions of the short crop,” Roose added.

Agriculture commodities report for June 19

Soybeans Daily chart June 19

Soybean prices are trading in consolidation mode above the 9.000 area after logging five positive sessions in a row until it reached highs since February 1 at 9.156. On Wednesday, the bushel of soybeans is moving between 9.000 and 9.080.

Corn is falling for the second session in a row as the unit is extending its rejection from five months highs at 4.590 reached Monday. Currently, the unit is defending the 4.400 support. Technical conditions remain favorable and suggest a new visit to the 4.600 in the next days.

Wheat is logging its third negative day. The unit falling below the 5.200 support. It is currently trading at 5.185. Wheat is losing 3.0% in the week, following a rejection from 5.450, its highs level since August 20, 2018, reached last Monday.

Coffee futures broke below the 98.00 critical level earlier on Wednesday, but the unit found support at 97.05. It, then, recovered some ground to current levels around 98.00. The 200-day moving average contains coffee in the long term.

Sugar extended losses for the third day, and it is testing the 0.1240 level on Wednesday. Technical indicators are mixed with the unit fighting to hold above the mentioned level. 98.00 is critical support as a break below there could spur more loses at least to the 0.1210 area.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US