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

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.