Agricultural futures such as soybeans, corn or wheat are trading positive on Wednesday amid weak crop conditions in the U.S. The White House hopes China will resume grains purchases, but Chinese crushers are not in a rush.
Sugar is also positive amid news from India and Brazil that are putting the price under pressure.
What is moving grains
Declining crop conditions in the United States and uncertainty about how crops will evolve in the next week are adding doubts about soybeans, corn, and wheat supply for the 2019-20 year.
The concerns are pushing prices up, while the forecast for better weather conditions contains the upside. Investors are now waiting for the new acreage count and grains report that the USDA will publish the first week of August.
On the other hand, the United States and China will resume negotiations for the trade war next week. The White House is hoping that the talks will bring China purchases alive again. However, people familiar with the matter said that Chinese crushers are in no rush to buy from the U.S.
Meanwhile, Washington announced that the U.S. government would pay a minimum of $15 per acre to farmers that have been hurt by the trade war between China and the United States and which was impulsed by President Donald Trump.
Agriculture Secretary Sonny Perdue said that the Department of Agriculture would “have information for you [farmers] before the week ends.”
Soybeans positive after bouncing back at 200-day M.A.
Soybean is trading positive on Wednesday as investors are digesting news in the U.S. and China.
After two days of declines from 9.000, beans found support at the 200-day moving average at 8.777 on Tuesday. The unit opened Wednesday with gains, and it extended the bounce to test the 8.890 area.
Currently, Soybeans is trading 0.75% positive on the day at 8.885. Technical indicators are mixed with a no clear way to take. To the upside, beans will face resistance at 9.000, and then, the critical 9.150.
To the downside, the previously mentioned 200-day moving average at 8.777 is the short term support. Below there, July 9 lows at 8.660 and June 10 minimums at 8.410 are buying zones.
Corn bounced back 4.130, but it seems to be short-lived
Price Corn is trading positive on Wednesday after bouncing at 4.130 on Tuesday. Currently, the grain is trading at 4.210, 0.80% positive on the day. Previously, it tested the 4.250 intraday high.
Wheat positive after a Doji daily candle
Prices of wheat are moving higher on Wednesday as investors are extending bounce from Tuesday’s lows at 4.800. Currently, it is trading 1.40% positive at 4.903.
Wheat looks like developing a positive u-turn after a Doji candle on Tuesday and an extension on Wednesday. However, technical indicators are weak.
Sugar extends rally for the second day
After logging 8 trading session with losses, sugar is now recovering levels for the second straight day with the unit extending gains from Tuesday minimum at 0.1120 to test the 20 and 50 days moving average confluence around 0.1200. Sugar is currently trading 1.02% positive at 0.1188.