Soybeans on Recovery Mode, Coffee Performs its First Positive Day in JuneCoffee is performing its first positive day in June. Soybeans, corn and wheat are recovering its mojo and trading up too.
Agricultural commodities got reactivated on Thursday after the breath investors took on Wednesday just ahead of the Federal Reserve meeting.
So, the Fed talked and it changed its stance to a dovish forecast for the economy and paved the way for a rate cut on its next FOMC in July. As reported earlier in the day, the FedWatch tool is giving 100% of probabilities for a rate cut in July.
In this framework, Dollar is trading down with grains as soybeans, corn, and wheat performing gains. Even coffee is alive today as the grain is logging its first positive day in June.
Now the focus is changing from planting to emerging. Concerns remain about cold and wet weather that can cause even more damage in an already weak agricultural season.
Agricultural report for June 20, 2019
Coffee is trading positive for the first time in June as the last day with gains was May 30 with a 0.80% daily gain.
On Thursday, coffee is extending a rebound from 210.00 in what it looks like profit-taking after a long bear run. The unit is now trading at 219.00, 2.65% positive in the day.
Soybeans recovered steam, and it is trading above the 9.000 area again. The unit is trading 1.60% positive on the day at 9.115. It is ready to test the 9.156, near 4-month high reached yesterday.
Corn is recovering ground on Thursday after two negatives days, and after finding support at the 4.3320 area, it is back above 4.400. Currently, it is trading at 4.440, 1.75% positive on the day.
Wheat is also performing a recovery Thursday after three negative sessions. The unit found support t the 5.100 area, and it bounced back to trade at 5.240, posting 1.20% gains so far in the day.
On the other hand, sugar is extending losses for the fourth straight day as the pair is now trading at 0.1235, 0.30% negative on the day. In the last four sessions, sugar has lost 2.5% of its value from 0.1270 to current 0.1235.