Soybeans, Corn Down on Planting Report, Coffee Down the Most in 9 years

Coffee is falling hard on Thursday amid fundamental news. Soybeans and corn are also declining amid reports that says the delays weren’t too much.
Mauricio Carrillo
Soybeans, Corn Down on Planting Report, Coffee Down the Most in 9 years
Soybeans, Corn Down on Planting Report, Coffee Down the Most in 9 years

New crops report showed that the planting season of soybeans, corn, and wheat are delayed, but the damage is not too substantial. So, investors are digesting the news, and the prices are going lower on Thursday.

Coffee price, on the other hand, is falling hard in a mix of technical selling and news that coffee may affect health. Sugar is trading higher on Thursday after the recent correction.

Agricultural round-up

Soybeans are trading negative for the second day in a row to test 8.500 area as investors intensified the sales after the unit got a rejection at the 8.800 area and reports that the crop damage due to delays on planting is not too heavy.

Corn extended loses for the second day in a row and continue with its rejection from the 4.300 area. However, the grain found support at the 4.000 level on Thursday as investors are digesting reports that Mexico will not use corn as a retaliation of US tariffs.

Wheat is trading positive on Thursday after two consecutive negative days. The grain found support at the 200-day moving average level at 4.840.

Sugar recovered its mojo, and after a rejection of the 0.1240 area that sent the unit to test 200-day moving average at 0.1200 on Wednesday, the soft is now back on positive and after recovering all Wednesday’s loses it is currently testing the 0.1240 area again.

Coffee is falling hard on speculations that roasted coffee contains a chemical with potential healthy danger; Also, investors are selling the grain after it was unable to break above 106 and fundamentals remain weak for the price.

In this framework, coffee futures price is falling 6.23% on Thursday as the unit declined from 106.00, its highs since February 8 to trade below the 100.00 mark and test the 98.50 area.

Corn excluded from Mexico retaliation tariffs list

Prices of Corn fell to 4.000 on Thursday amid reports that say that the delayed planting damage is not too significant and the season will be moderate okay.

Also, the unit is extending falls from the 4.300 level that was reached last week. The pair declined to 4.000 earlier in the day, but it recovered to 4.085 as Reuters reported that Mexico is excluding corn from any tariff retaliation against the United States.

Currently, corn is trading 0.42% positive at 4.085. Technical conditions suggest sideways in the short term but more declines in the middle term. However, if the pair holds the 4.00 level, it may change the outlook.

Coffee falls the most in nine years

Coffee daily chart June 6

Ugly day for coffee investors as futures prices are falling over 6% in the session amid a cocktail of bad news for the value.

In one hand, California is living a polemical story about coffee and a link with cancer as roasted coffee beans contain acrylamide, one of the hundreds of chemicals listed as a carcinogen or reproductive toxin under California’s 1986 act.

However, the state managed to cold down the polemic as it signed a new rule admitting that coffee won’t kill you. Acrylamide is also found in 40% of calories Americans consume.

On the other hand, coffee futures are falling amid technical event and profit taking as reports coming from Brazil said that the coffee season is very healthy so it won’t face any problem or delay in planting, harvesting and roasting.

Coffee prices are currently 6.23% down on the day as the unit was unable to break above the 106.00 area, and investors got nervous and decided to sell it. It broke below the 200-day moving average level at 102.35, a technical event that triggered stop loses and sent the pair deeper below the 100-00 area.

It is now trading at 98.55. Next support is identified at 96.75 and 95.00.

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