Grains are sideways on Wednesday as investors are closing positions ahead of the long weekend in the US.
Also, any development on Friday’s US employment report and non-farm payrolls’ release will produce a violent reaction in the investment market due to the lack of volatility. So, they do believe it is better to book profits and come back on Monday.
Hard weather conditions are still pressuring farmers all around the world. Dry conditions in Canada, Russia, and India, heavy rains in the United States and cold temperatures in Brazil are pushing grains prices up, but the catalysts are losing steam as the season advances.
Soybeans find support at 8.700
Soybeans are giving signs of life on Wednesday as the grain is trading positive after two days with heavy losses. In just the second positive day in the last seven since the unit was unable to sustain levels above the 9.100 area.
On Wednesday, Soybean prices found support at the 8.700 area where it built a kind of support. It allowed it to bounce back to current levels at 8.795, 0.80% positive on the day.
Prices of soybeans are trading down in the middle term. Investors are closing long positions as the catalyst of bad weather and delays in planting are losing traction. However, more heavy rains are expected in the US’ Iowa and most parts of the farm belt in the midwest.
“Isolated to scattered thunderstorms are expected this afternoon and this evening across mainly the western two-thirds of Oklahoma and Texas panhandles,” the National Weather Service said.
Grains report for July 3, 2019
Corn is trading positive for the second day as the unit is extending its recovery from the 4.060 area following a multi-day decline from the 4.500 area.
Currently, corn is trading at 4.180, 1.36% positive on the day. Technical studies are depressed but signaling some turning points. Only time will say it. For now, corn should break above the 4.300 area and then attack the 4.500 level again.
To the downside, corn will see supports at the mentioned 4.100, then the 4.000 area and the 3.900.
Wheat is also posting gains on Wednesday as investors are closing short positions ahead of the fourth of July holiday in the United States. The unit found support at 4.960 earlier in the day. It is trading now 0.85% positive on the day at 5.020.
Sugar is trading down for the fourth consecutive day as investors are digesting the news of weather problems in Brazil and India. Sugar is testing 0.1200 level again after rejecting it on June 26 and 27. It jumped to 0.1260 before falling back. Currently, sugar is trading 0.07% negative on the day at 0.1210.
Coffee prices are experiencing a kind of rollercoaster this week as news of cold weather in Brazil could be affecting the season. After jumping to 114.00 highs on Tuesday, the unit got a rejection, and it fell to 109.10. Now, coffee is trading almost flat on the day at 110.40.