Soybeans Bounced at 8.700 and Turned Positive; Coffee Hits 115.00

sGrains were trading down as investors are getting exhausted after following wet conditions for several weeks. Also, some hopes were raised after Trump said that his meeting with Chinese President Xi was excellent. They agreed for a truce and were ready to start talks again.

However, the recent tweet from Trump push prices under pressure. He was complaining against the role Chinese and European leaders are doing to push their currency down.

“China and Europe playing big currency manipulation game and pumping money into their system in order to compete with USA,” the president wrote. “We should MATCH, or continue being the dummies who sit back and politely watch as other countries continue to play their games – as they have for many years!”

The tweet raised concern on another trade war between the United States and Europe. Plus, more problems for US Farmers and global commerce.

On the other hand, Kirk Leeds, CEO of the Iowa Soybean Association, said that in the “short term, I think there’s just this general fatigue.” Including farmers, buyers, and investors, everybody is tired of the trade war.

“Longer term, I am extremely concerned and have been since it started, about the impact on trade,” Leeds says. He also confirmed that they are looking for other markets than China due to the possibility of a prolonged trade war between the two countries.

Soybeans bounced at 8.700 and tested the 8.820 level

Soybean prices closed positive on Wednesday as investors digested Trump tweet against China and Europe. The oilseed found support on 8.700 on Wednesday and then is bounced back to trade as high as 8.835 before getting back slightly to close at 8.825, 1.15% positive on the day.

Remember that markets in the United States are closed on Thursday due to the Fourth of July. Friday will be a volatile day with the release of the US employment report in the middle of a thin market due the long weekend started Wednesday.

Be aware of 8.700 at the downside, and 9.000 on the upside as levels to watch.

Grains report for July 4th, 2019

Coffee prices extended its multi-day rally on Wednesday after performing a brief period of consolidation between 114.00 and the 110.00 area. On Wednesday it jumped to fresh highs since November 29th at 115.00. Then, it came back to close 2.36% positive at 113.00.

Corn closed Wednesday with substantial gains amid new concerns about the trade war now between the US and Europe and also a new twist in US-China relationships following Trump’s tweet.

Prices of corn rallied 3.96% on Wednesday as the unit extended gains for the second day and tested the 4.300 area before the closing bell. Corn is now at 4.284, waiting for Friday’s fireworks.

Wheat finished Wednesday with gains as the unit found support at 4.955 after fourth negative days and it traded back to 5.090. It closed the day 2.15% positive at 5.085.

Sugar recovered ground on Wednesday after it logged its first positive day in the last four. Sugar found support at 0.1200 on Tuesday, and it extended recovery on Wednesday to test the 0.1240. It closed the day 1.80% up at 0.1230.