Grains such as soybeans, corn, and wheat are trading depressed on Tuesday as investors are digesting the latest planting and emergence reports. On the other side, coffee rallied to highs since November amid cold weather in Brazil.
According to the USDA, soybean crop was 92% seeded as the last week, below the 99% average in the previous years. Emergence reached the 83% level, also behind the average of 95% for this time of the year. 54% of US beans were rated good or excellent.
Corn is finally planted with 94% of the crop emerged last week. 58% was in good or excellent conditions. Winter wheat harvest is well below the average as it was finished by 30% last week, down of the 48% average.
Coffee in danger as Brazil faces cold weather
Arabica Coffee is trading higher on Tuesday as Brazil is forecasting cold snap in the country that could put in danger crops in the coffee producer regions of southern Brazil.
“Much below average temperatures are expected Friday,” weather forecaster Radiant Solutions said in a note, “which will raise the threat for frost.”
Coffee prices jumped to 114.00, its highest level since November 2018, on Tuesday as investors are digesting news from Brazil related to cold weather forecast. However, the grain of coffee couldn’t sustain prices, and it started to fall back.
Currently, coffee is trading at 111.00, still posting a rise of 1.0% from the previous close. A close above the 110.00 level will be key to extend gains in the middle term.
Grains report for July 2, 2018.
Soybeans are trading down for the second day as investors are closing long positions gradually. The Uni is now extending losses beyond the 200-day moving average level at 8.750. Currently, soybean’s prices are 0.85% down on the day at 8.740.
Technical indicators for soybean are pointing to the south with the 8.735 acting as short term support. Below there, the unit will face buying zones at 8.630, 8.530, and 8.420.
Corn has finally found support at the 4.060 area after falling five consecutive days from the 4.500 area. Corn prices are now at 4.100 as the unit is attempting a rebound from lows. However, technical studies are signaling more losses in the short term. It seems that the 4.000 is just waiting for the pair.
Wheat is trading down for the fourth straight day as the unit broke below the 5.000 level on Tuesday to trade as low as 4.955, its lowest price since June 10. Currently, Wheat prices are moving at 4.980, 1.40% negative on the day.
Sugar is down for the third day in a row as the unit is extending losses after rejecting the 0.1260 area on June 28. The unit is now testing the 0.1200 area and the 50-day moving average at 0.1205. It is a fundamental level as it would change the unit to bearish in the middle term. Technical studies are signaling consolidation in the short-term but more drops in the middle time.