Agricultural prices are trading lower on Tuesday as investors are digesting the USDA’s weekly Crop Progress Report released on Monday.
Improvement in the crop situation and quality conditions have pushed prices down; while retail sales data is pushing dollar up, adding pressure to exports prices in the US.
Soybeans down for the second day
Soybean is extending losses for the second straight day as investors are digesting reports on crop condition improvements and better than expected weather in the US midwest.
Also, a better than expected retail sales data in the United States are pushing grain prices under pressure. A higher dollar will make US products more expensive.
According to the USDA’s weekly Crop Progress Report released Monday, soybeans crop is rated 54% good or excellent, a rise of 1 percentile point from last week. 95% of the soybean crop has emerged, lower than the 99% average in the previous five years, but an advance at all.
On Tuesday, the price of soybean is falling 1.3% on the day as it is trading around 8.845. The bean is extending losses from the 9.125 area, level the unit tested on Monday, but it failed to sustain gains.
Soybeans are now heading to test the 200-day moving average as next support. Below there, 8.670, July 9 low, and the 50-day moving average at 8.600 are the levels to watch.
Corn extends 4.500 rejection for the second day
Price of corn is falling on Tuesday as emerging, and crop quality has improved. Also, retail sales and better weather are pushing rates down.
USDA’s weekly Crop Progress Report showed that overall conditions of corn crop was rated 58% good to excellent in the US. Up from 57% last week. However, just 17% of the crop was in the silk stage, well behind 42% on average in the last five years.
Corn is currently trading at 4.250, 2.30% down on the day. The unit is extending losses from Monday’s highs around 4.530, and it is focused now in the test of the 4.200 area. Below there, the 4.080 level will be the target.
Agricultural prices report for July 16, 2019
Wheat is trading in recovery mode after falling to 4.965 earlier in the day but bouncing back at that level to move at current prices around 5.030. WheatUSD is 0.08% negative in the day.
US winter wheat harvest is at 57% complete, well behind of the 71% average in the last five years. Spring wheat crop is rated 76% good or excellent, below last week 78% rating.
Sugar is extending losses for the fourth straight day as improved weather in Brazil and India are pushing prices down. Sugar is now trading at 0.1175, 0.55% down on the day. Next support for sugar will be at 0.1135 and 0.1115.
Futures of coffee jumped on Monday as the contract rallied 3.2% at the beginning of the week with the grain closing the day at 109.95. Technical conditions suggest more gains in the next days.
This article was originally posted on FX Empire
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