Soybeans, Corn, and Wheat on the Defensive Amid Planting Progress

Soybeans, corn and wheat are trading on the defensive amid reports of planting progress and weak soybeans imports in China.
Mauricio Carrillo
Soybeans, Corn, and Wheat on the Defensive Amid Planting Progress

Agricultural commodities started the week with losses, but as the day continues, soybeans, corn, and wheat are recovering ground.

Most of the decline may be attributed to improvements in the planting progress amid better weather in the United States, and reports that soybeans imports in China have fallen on Trade war and pig disease.

Agricultural trading report

Soybeans recovered early losses, and it is now trading positive on the first day of the week. It would be its first daily gain in the last four sessions.

The same story with corn, the grain recovered from the 4.030 area, and it is posting gains on the day. However, the advance is limited.

Wheat bounced at 4.900 before recovering the 5.000 area on Monday. The 200-day moving average supports the unit at 4.840.

Sugar was rejected by the 0.1240 rea again on Monday after testing it several times last week. It is now trading down at 0.1225.

Futures of coffee is down again on Monday as the 200-day moving average is acting as resistance at 102.35. Previously, the unit jumped to 103.35, but it couldn’t sustain the move.

Weather improves in the United States

Rain outlook June 10

Better weather conditions are expected to improve in the next day according to Alex Sosnowski, AccuWeather senior meteorologist. “More dry weather is in store for the northeastern United States this week, but it will be sandwiched in between two rounds of rain and thunderstorms.”

Besides, Renee Duff, also an AccuWeather meteorologist, affirmed in a recent piece of news published by his company, “while showers and locally severe thunderstorms will cross the central United States on occasion this week, the wet weather will not be as persistent as in recent weeks.”

Duff affirms that farmers will be able to get back to the fields to continue their planting. “The less frequent rainy periods will aid communities continuing to clean up from devastating flooding and farmers who have been kept from working in flooded fields.”

Long story short, the weather is improving and the conditions for planting are better than previous weeks. In this framework, soybeans, corn, and wheat prices are under pressure.

China imported fewer soybeans in May

Imports of soybeans fell 24% in China in May from the same month in the last year, according to a report from the General Administration of Customs quoted by Reuters. They signaled ongoing Sino-US trade war and African swine fever as reasons.

China imported 7.36 million tonnes of soybeans in May, down 9.69 million tonnes in May 2018.

Remember that China added a 25% tariff to US soybeans imports last July, as a countermeasure from the tariffs imposed by the White House and the government of Donald Trump.

Soybeans bounces and post gains on the day

Prices of Soybeans are trading in a rollercoaster on Monday as the bushel fell to trade as low as 8.410, its lowest level since May 28, earlier in the day. Then, it bounced back and recovered to trade above the 50-day moving average at 8.520.

Currently, the unit is trading 0.80% positive on the day as it is extending its recovery. However, the 8.600 area is containing the upside for the bushel.

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
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.
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.