Soybeans and Grains Trade Higher Due to Hot Weather and Profit-Taking
Grains are trading positive on Friday as investors are digesting news and closing positions ahead of the weekend.
Investors are watching current heat weather in the United States and the forecast for the next days to anticipate possible affectations in crops. Also, news that China has made its most significant acquisition of US sorghum since April has fueled hope for other product purchases such as soybean and corn.
Both pieces of information are catalysts for today’s grains upside, but additionally, the typical Friday profit-taking move ahead of the weekend are fueling prices as investors are finishing its short positions.
Soybeans jump amid weather and profit-taking
Soybean prices are moving higher on Friday as investors are digesting news and heat weather conditions in the US.
On Friday, soybean is extending its rebound from Thursday’s lows at 8.710 to trade as high as 8.920, its intra-day high in the last day of the week. Soybeans are currently moving at 8.885, 1.25% positive on the day.
On the week, the unit is ready to close negative as the grain was unable to break above long-term resistance at 9.150. A level that has been containing the unit since June 2018.
Soybeans look trapped in a range between the 50-week moving average at 8.720 and the mentioned multi-month resistance at 9.150. At this moment, the grain is closing 2.2% negative on the week.
Back to the daily chart, any soybean recovery will face the 9.000 level as resistance, followed by the 9.150. To the downside, 8.660 is the first support, followed by 8.400 and 8.340.
Corn finds support at 4.180
Corn is trading positive on Friday after performing three negative days in the last four. Investors are closing short positions ahead of the weekend.
After bottoming at 4.180 on Thursday, the unit retested that level on Friday, but it held. Then, it started a shy upside that has the unit now at 4.220, posting 0.72% gains in the day.
On the week, corn is ready to close negative for the first time in July and even more harmful, as the current weekly candle is retaking almost all gains in the previous two weeks. Corn is falling 5.71% on the current week.
Wheat positive for the first time in the week
Prices of wheat are trading higher for the first time in the current week as investors are closing short positions and booking profits ahead of the weekend.
On Friday, investors initially sold wheat until it reached 4.880, its lowest level since June 6. Then, it started a recovery that took the unit to trade at 4.960, 1.12% positive on the day.
On the weekly chart, wheat is, obviously, harmful with a 4.47% potential decline. It would be the fourth week with drops in the last five.
This article was originally posted on FX Empire
