Grains are trading mix on Tuesday as investors are digesting better than expected crop report from the USDA and bad weather in Brazil.
Soybeans recover ground after bouncing at 8.660
Soybean prices are moving higher on Tuesday as the unit found support 8.660 earlier in the session and it bounced back to trade at current levels around 8.750. On the day, the oilseed is performing 0.38% positive.
Previously on the day, the bushel of soybean declined following a good enough crop report from the United States Department of Agriculture. The USDA rated soybeans 53% good or excellent, down from 54% the previous week. 90% of US beans have emerged, below expectations but only 10% blooming.
Corn fails at 4.400 amid USDA report
Corn is trading down on Tuesday as investors are welcoming crop report from the USDA. On Monday, the unit performed a daily Doji candle that signaled reversal; now, Tuesday candle is confirming the downside as its body is going below yesterday’s low.
Earlier in the day, the grain dropped to 4.219 before bouncing back to current levels at 4.262, 1.30% negative on the day.
According to the USDA, 57% of corn crop was rated good or excellent, up from 56% last week. 98% of corn has emerged in the US.
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Sugar is losing on Tuesday all the gains conquered on Monday as the unit fell over 1% to test the 0.1200 area. Currently, sugar is trading at 0.1213, 0.70% negative on the day.
Sugar prices are under pressure amid news from Brazil where frosts are affecting several agricultural areas in the country.
Coffee closed Monday with significant losses as investors are extending its profit taking from the 116.00 area. However, news that a frost front in Brazil affecting key coffee areas could push prices up again.
According to Reuters, “Brazil is in the middle of coffee harvesting, and any impact would be felt only in next year’s crop. Traders were expecting a record crop in 2020, when the country returns to the on-year in the biennial arabica cycle. But it is unclear now whether production could surpass the 2018 record near 62 million 60-kg (132 lb) bags.”
Prices of coffee fell to 105.20 on Monday, its lowest level since June 25. It is now trading at 106.85.
Wheat is trading down for the second day as investors are digesting latest USDA report. On Tuesday, wheat fell to its lowest level since June 10 at 4.939, where it found support. Now, wheat is trading at 4.990, 1.36% positive on the day.