Corn and soybeans are trading down on the first day of the week as investors are digesting USDA reports on planting and emerging armyworm findings in China.
However, the US government said that farmers planted more corn than expected by market watchers.
“I think the USDA is sending the message that corn acres got planted – regardless of what some of these farmers up here in the Midwest see outside their kitchen windows,” Karl Setzer, market analyst for Agrivisor, said to Reuters in a recent note.
Nevertheless, the United States Department of Agriculture reported that corn planting progress was below average the whole spring.
According to the USDA annual acreage report, farmers seeded 91.7 million of acres of corn and 80 million acres of soybeans, well-below of government forecast of 92.8 million corn acres and 84.6 million acres of soybeans.
With all that information, crops chief at the USDA National Agricultural Statistics Service Lance Honig tweeted that the agency will resurvey data in 14 states now and it will release another report on August 12.
Grains report for July 1, 2019
Corn is extending its decline for the fourth straight session as the grain is trading 2.60% down on Monday and testing the 4.060 area. The unit is expected to test the 4.000 level anytime this week.
Soybeans are trading down on the day as the unit fails to keep prices above the 9.000 mark for the second straight day. The oilseed is now moving at 8.885, 0.80% down on the day, however, the unit remains well-supported by the 8.815 area.
Wheat broke Friday’s lows at 5.160, and it is extending losses to trade as low as 5.030, its lowest level since June 11. On the day, wheat is posting 2.7% declines at the current 5.065.
Sugar is posting gains on the first day of the week as investors are resuming Thursday’s jump from 0.1200 to 0.1260, and posterior Friday’s setback to 0.1230. The unit is now testing the 0.1260 again with technical indicators and fundamental factors favoring the upside.
Investors in sugar are now focused on the weather of India as the weather department reported on Sunday that the country has its driest June in Five years due to a delay in monsoon rains.
Coffee broke above the 108.00 resistance on Monday, and it jumped to trade as high as 110.50, its highest level since December 3. Prices of coffee have been trading positive since June 24 with five sessions with gains on the back of weather.
This article was originally posted on FX Empire
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