Yahoo Finance Grain Prices are Mixed as Planting Accelerates
Grain prices continue to whipsaw and are mixed in early North American trade. Corn and soybeans are higher while wheat prices are lower. Planting of grains was running well behind last year up until this past week, where corn, soybeans and wheat planting caught up and has now surpassed last years pace. The Trump Administration levied trade Steel and Aluminum tariffs on Europe, Canada and Mexico which could eventually experience retaliation on farm products.
Corn Prices
Corn prices edged higher after closing through support near an upward sloping trend line that which is now seen as resistance at 3.95. Additional resistance is seen near the 10-day moving average at 4.01. Support is seen near the May lows at 3.87. 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). The MACD histogram is printing in the red with a downward sloping trajectory which points to lower prices.
Soybean Prices
Soybean prices moved higher in early North American trade but remain rangebound. Resistance is seen near the 10-day moving average at 1026. Additional resistance is seen near a downward sloping trend line at 1065. Support is seen near an upward sloping trend line that comes in near 995. Momentum is neutral as the MACD (moving average convergence divergence) histogram is printing in the black with a flattening trajectory which points to consolidation.
The soybean crop accelerated from 56% planted to 77% over the past week as numerous states were able to get 30% or more of their crop into the ground. Michigan is the furthest behind schedule, having only 45% of the crop planted vs. a 5-year average of 60%. North Dakota made the most progress over the past week, getting 39% of its crop planted. 47% of the soybean crop is emerged. This is up from 36% last week and is 15 points ahead of the five-year average.
Wheat Prices
Wheat prices are down in early North American Trade. Resistance is seen near the 10-day moving average at 522. Support is seen near the May lows at 480. Momentum is neutral as the MACD (moving average convergence divergence) histogram is printing in the black with a flattening trajectory which points to consolidation.
Spring wheat made solid progress for a third consecutive week. Currently 91% of the crop is in the ground, up from 79%. This is 4 points behind last season’s pace but two points over the five-year average. Four out of six reporting states are below their average pace and two exceed average. Montana made the most planting progress over the past week, getting 21% of the crop planted. The condition of the winter wheat improved. 38% of the crop is rated good to excellent, up two points from last week but 12 points less than last year’s rating at this time. 34% of the crop is in poor to very poor, a point improved from last week. 73% of the winter wheat crop is headed and 63% of the spring wheat crop has emerged.
This article was originally posted on FX Empire
