Agricultural futures are trading on consolidation mode on Friday as investors are digesting fundamental situations and wet conditions in the US and dry weather in Russia and Australia.
Also, corn’s planting delays are raising speculations on a bigger than expected beans season.
Mark Feight, Managing Director at the International Agribusiness Group, said to AgDay show that in terms of prices, “soybeans tend to be the anchor right now keeping the corn from getting higher.”
“We believe, from a planting perspective, if we don’t plant corn, we’re going to have to plant a lot of beans in the market,” says Feight.
According to an AccuWeather prediction, corn planting remains at record low rate and the United States Department of Agriculture will confirm next week with its Crop Progress report.
“A new AccuWeather analysis estimates 82% of corn will be reported as planted in the 18 key US corn-producing states, a historic low for the second week of June since record keeping began in 1980,A new AccuWeather analysis estimates 82% of corn will be reported as planted in the 18 key US corn-producing states, a historic low for the second week of June since record keeping began in 1980,” the note says.
Soybeans are trading negative for the third day as the unit is extending losses below the 8.600 area. Beans are posting its first week with declines in the last four.
Corn consolidates levels above 4.100, but the recovery is unable to put the grain on the green in the weekly chart.
Wheat found support at the 200-day moving average at 4.840 and recovered the 5.000 level on Thursday. So, it is trading in consolidation mode on Friday and closing the week with gains.
Coffee is trading on recovery mode after finding support at 98.00 on Thursday. The grain is now testing the 200-day moving average at 102.30. However, the future is closing the week with losses.
Soybeans on the defensive
Price of soybeans is trading down on Friday as the nit is extending losses and testing the 50-day moving average at 8.525. Technical conditions suggest more room for the downside.
On the week, Soybeans is closing the first week with losses in the last four as the unit is facing 50 and 20 days moving averages levels. However, in the weekly chart, the bushel of soybeans looks positive with the 8.500 supporting the unit.
To the upside, always talking about the weekly chart, beans will face resistance at 8.900 and 9.100.