Grains are trading down on Thursday as investors are digesting recent progress in crop reports.
Traders are now focused on the second survey of planted acres that the U.S. Department of Agriculture will release on August 12. They are expecting significant advances.
Soybeans extend decline for the fourth day
Soybean is trading down for the fourth straight day as investors are digesting reports on crop progress. Beans are now testing the 8.700 area.
Currently, Soybean is moving at 8.728, 0.50% down on Thursday. In the last four days, the oilseed has fallen around 4.4% from July 15 highs at 9.125 to today’s fresh bottom at 8.710.
Technical conditions suggest more room for the downside with the 8.660 area as the next support. Below, check the 50-day moving average at 8.615 and the 8.400 as buying zones.
To the upside, the unit needs a close above the 8.800 area to give bulls reasons to believe in a long run. The 20-day moving average will be the next resistance and above there, 9.150.
Corn breaks below 4.200
Corn is falling hard on Thursday as investors are digesting better than expected reports on crop progress. It is the third negative day in the last four.
Prices of corn fell on Thursday from 4.300 to break below the 4.200 area and trade at lows since July 3 at 4.170. Currently, it is trading at 4.190, 2.35% negative on the day.
Technically, the pair looks bearish with the 50-day moving average at 4.110 and the July 1 and 2 lows at 4.060 as the next supports.
Wheat falls below 4.940
After falling for four consecutive days, wheat has finally broken below the July 10 low of 4.930, and it is now trading as low as 4.905, a fresh minimum since June 10.
The grain is now developing what it looks like a lower low on the daily chart — signaling a downtrend in the chart pattern.
With the pair trading 1.56% down on the day at 4.921, next support is at the 200-day moving average at 4.365. Below there, 4.760 and 4.730 are the levels to watch as buying zones.
Grains report for July 18, 2019
Sugar is falling hard for the sixth day in a row as investors are digesting improved weather in Brazil and India. Technical conditions suggest more losses in the short and middle term.
Coffee futures closed Wednesday with gains, but the unit remained below the 109.00 after finding support at the 105.50 area. The unit moved up and down with violence on Monday and Tuesday. However, on Wednesday, it returned to the range between 105.50 and 108.00.
This article was originally posted on FX Empire
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