Soybeans, Corn, and Wheat Fails at Highs and Got Rejection

Grains are trading negative on Monday after jumping to trade at highs, but soybeans, corn, and wheat got rejections. Hot temperature and CoT report the reasons.

Soybeans fail at the 9.150 area again

Prices of Soybeans opened the week with a negative note as investors are digesting weather forecast and increasing long positions. It would be the first negative session for beans in the last six.

According to the Commodity Futures Trading Commission, investors raised their net-short positions to 45,750 futures contracts on the week ending on July 9.

Investors are concerned about dry and hot weather moving to US midwest that could potentially harm grain crops and farms that completed planting late.

Price of soybean jumped to 9.125, July’s fresh high, earlier in the session but the grain couldn’t sustain those levels, and it is now trading down below the 9.000 again.

With soybeans extending losses around 8.960, it is now trading 1.26% negative in the day. Next support will be the 20-day moving average at 8.917, and then the 200-day moving average at 8.765. Below, July 9 low at 8.660 is the area to focus.

To the upside, the 9.150 area remains as a strong barrier for the upside. Soybeans have tested that level since November 2018, but it has failed several times.

So, all depends on how the 9.150 will perform. As for now, technical studies suggest more room for the upside, but a short term retracement. Time will say.

Corn rejects the 4.500 area

Prices of corn are trading down on Monday as investors are taking profit after the CoT reported an increase in the net-long positions and some concerns for hot temperature.

Corn jumped to trade above the 4.500 area at 4.530 earlier in the session, but the grain failed to sustain levels, and it fell back to trade below the 5.400. Corn is currently moving at 4.390, 2.0% negative on the day.

The grain is stopping in that way the recovery started at 4.200 on July 10; however, technical studies are showing room for the upside, though some exhaustion has shown up.

To the downside, the unit will face support at the 4.200 area, then the July 1-2 lows at 4.060. To the upside, corn should close above the 4.500 area, and then the door will be open for the 4.600 high.

Wheat lost 2.7% on the day after posting fresh July highs

Price of wheat is moving down with violence on Monday as the unit got a rejection at 5.265, its highest level since June 28.

Currently, WheatUSD is trading at 5.045, 2.7% down in the day. The unit is now facing supports at the psychological level of 5.000, then the July 10 low at 4.930 and the 200-day moving average at 4.865.

To the upside, the unit needs to maintain the 5.000 area and then recover the 5.200 level before thinking for a resume of its uptrend. 5.500 is the level to watch.