Soybeans, Corn Down, But Wheat is Giving a Possible Bullish SignalFutures of wheat are now trading on recovery mode, but it is facing the 4.74 short term resistance at this moment. Currently, the unit is still 0.70% negative on the day. However, a potential bullish movement is now on the cards.
Corn, Soybeans and other softs futures are trading down on the day as investors are trading quietly and with low volume, as they are waiting for more developments in the trade war between the United States and China.
On the other side, wheat is trading negative, but it is now giving signals of a potential u-turn in the prices. Technical indicators are suggesting that a possible bullish movement is in the making.
Soybeans break below 8.55 and accelerate losses
Futures of soybeans are trading down on Wednesday as investors are digesting improving crop conditions and trade war developments. The grain is extending is rejection from the 8.63 level touched on Tuesday and today, it broke the dynamic uptrend line at 8.60, which comes from August 27 low.
Soybeans broke below the August 23 lows at 8.55, and it is now trading at intra-day minimums at 8.53, the grains cheapest price since August 8.
With the contract now posting 0.76% daily decline, technical conditions in the 1-hour chart are suggesting more room for the downside with Oscillator and MACD pointing to the south.
The unit is now heading to the 8.50 critical support. Below there, a break of the 8.45 level will expose multi-year low of 7.90.
Corn slides a bit more, but it attempts to recover
Futures of corn are trading slightly negative on Wednesday as investors are waiting for trade war developments. On the day, corn prices found support at the 3.64 area and it started to recover ground to price at 3.65’4, which is 0.20% positive so far in the day.
The unit is now facing the short term resistance of 3.66. Technical indicators, however, are mixed but they are also suggesting that the potential downside is stronger than the upside. Also, moving averages are pointing to the south.
Corn needs a break above the 3.66 to recover some upside potential. Above there, it will face resistance at 3.69 and the 3.70 area.
On the other hand, in the case of futures of corn are not able to break above the 3.66, it will return all the way down to a retest of the 3.64 level. Then, supports are at 3.61 and 3.58.
Wheat remains inside the range, down on the day
Wheat returned to the range between 4.60 and 4.80 early in the day after a brief adventure above it. Then, the unit has been falling until it found support at 4.71 just moments ago.
Futures of wheat are now trading on recovery mode, but it is facing the 4.74 short term resistance at this moment. Currently, the unit is still 0.70% negative on the day. However, a potential bullish movement is now on the cards.
Technical conditions in the 1-hour chart are showing a possible recovery extension as Momentum and MACD are signaling a turn in the short term trend. In that case, a price consolidation above 4.70 will open the door for a new test of the upper side of the range at 4.77. Above there, 4.80 and 4.82 will be the resistances.
However, in the case the pair resumes its decline, 4.68 will be the first support, followed by the bottom of the range at 4.66 and finally the 4.62 area.