Agricultural futures are trading mixed on Friday as investors are digesting the U.S. GDP and inspection reports from the USDA.
U.S. Bureau of Economic Analysis reported a better than expected GDP in the second quarter of 2019; however, it also showed a slowdown from previous data.
On the other hand, the United States Department of Agriculture reported plunging week-to-week inspections. U.S. spring wheat crop was rated 76% good or excellent, unchanged from the previous week.
Besides, corn and soybeans sales for exports declined in the last week. Corn sales for 2018-2019 marketing year fell 39% to 121,200 metric tones. Soybeans also posted declines as cancelations loomed the deals.
Soybeans recover ground on Friday but remain negative in the week
Soybean is trading positive on Friday after the unit found support at the 200-day moving average at 8.780 and it traded back to 8.850.
Currently, the unit is posting 0.75% daily gains as it is trading at 8.851. Technical factors say that the movement seems to be short-lived, and due to profit-taking on Friday and the execution of contracts.
However, the grain looks bearish in the middle term with the mentioned 8.780 as immediate support. Below there, 8.700 and 8.660 are the levels to watch.
To the upside, soybean needs a close above 8.900 with the unit facing then the 9.000 area as the net selling zone.
On the week, prices of soybeans are moving negative for the second week in a row with the unit posting 1.65% losses in the period. The unit is extending its rejection of the 9.150 area.
Wheat declines for the first time in three days
Wheat is trading down on Friday for the first time since its bounce from 4.800 on July 23. The move comes after the grain got a rejection at the 5.040 on Thursday, level where the 20-day moving average was at that moment.
On Friday, Wheat is extending declines with the unit posting 0.93% daily losses as it is currently trading at 4.915.
Technical conditions are showing some revival in the grain, but the studies are still weak. Supports are at 4.885 and 4.800. Resistances are at 5.040, 5.100, and 5.220.
On the week, wheat is extending losses for the second straight week with the unit posting 1.40% losses in the period.
Corn down for the third day
Prices of corn are extending losses for the third day in a row with the unit now trading at +3-week lows near to 4.100. The grain is now heading to test July’s minimums at 4.060.
On the week, corn is extending its rejection from the 4.530 for the second period as the unit is 3.20% down on the last five trading days.