Grain Prices Break Down Lead Lower by Wheat and Soybeans
Grain prices were lower across the board on Tuesday in early North American trade wet where has soaked portions of the crop, relieving otherwise parched fields. A drought in the Plains has stressed the wheat crop for several months, resulting in poor crop conditions.
Corn Prices
Corn prices have broken down after closing below the 10-day moving average on Monday which is seen as short-term resistance at 387. Support is seen near an upward sloping trend line that comes in near 377. Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line).
Soybean Prices
Soybean prices broke down on Tuesday in early North American Trade after failing to take out resistance near a downward sloping trend line that comes in near 1068. Support is seen near the 10-day moving average at 1042. Momentum is negative to neutral as the MACD (moving average convergence divergence) histogram is printing in the black with a declining trajectory which points to consolidation. The RSI (relative strength index) also broke down which reflects accelerating negative momentum.
Wheat Prices
Wheat prices moved lower on Tuesday gapping down for the second straight trading session in early North American trade. Prices gapped through support now resistance at the 10-day moving average at 473. Support is seen near and upward sloping trend line at 450 and then the March lows at 441. Momentum is negative to neutral as the MACD is printing in the black with a downward sloping trajectory which points to consolidation.
This article was originally posted on FX Empire
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