Corn, Soybeans and other softs futures are under pressure after the last round of retaliations between the United States and China. Investors are, in the same way, holding their breath ahead of possible countermeasures from an angry Trump that would be announced Friday afternoon.
Soybeans collapse after China tariffs news
Soybean futures are extending losses on Friday as investors are digesting news that china will impose 15% tariffs to all beans from the United States starting September 1.
Currently, soybeans are trading 1.55% down on the day at $8.55 per bushel; a 13 cents decline per bushel from the price which opened the day at 8.63.
Previously, the unit was keeping the 8.68 support on play, but China’s news exacerbated sells with the bean breaking below that level earlier in the day and then the 8.58 in the last hour.
Investors are now closing positions ahead of the weekend but also ahead of Trump retaliation measure that he will announce this afternoon. Farmers are holding their breath as worries of an even ugliest framework for their business is on the cards.
Technically, futures of soybeans are poised to extend declines with the 8.52 level as the next support, then, 8.49 and 8.45.
On the week, soybean is ready to close negative for the second week in a row as the unit confirmed a middle term resistance at the 8.80 area — 8.44 on sight.
Corn trades down and confirms a short term downtrend
Corn is trading down on Friday as investors are worried about Trump’s retaliation that would be announced later on the day.
Currently, corn is trading 1.20% down on the day at $3.66 per bushel. Corn is falling after two days of timid gains in the grain. However, technical indicators are signaling more room for the downside, and the 3.60 support looks as a destiny for the unit.
That being said, fundamental factors are governing the grains market in the United States. Also, angry farmers that are raising complains against president Trump trade war agenda and the divergencies between WASDE report and the Pro Farmer Crop Tour numbers on acreage yield.
On the week, corn is closing the period on red but still far from previous week lows. The weekly chart also shows a strong bearish trend and indicators signaling more drops in the next periods.
Wheat positive for the third day
Wheat is trading positive on Friday as China retaliation measures are not hitting contract prices. However, the market is waiting for Trump measures to be announced Friday afternoon.
On the day, wheat jumped to trade at $4.75 per bushel, but it then returned to trade in consolidation mode around 4.70. Currently, the grain is trading 0.26% positive at 4.73.
However, wheat is still negative on the week as the 4.77 level contains the unit, and it is posting 0.55% weekly losses. Technical weekly conditions are suggesting more losses in the middle term. A retest of the 4.60 area is on the cards.
This article was originally posted on FX Empire
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