Grain prices are trading down on Monday as investors are digesting news about cooler US weather but drought conditions in Europe.
Soybeans, corn, and wheat prices are posting losses on the first day of the week with grains losing some Friday’s gains.
Different weather conditions between US and Europe
In the United States, weather conditions are improving with the hot weather moving on and rainfalls expected to arrive in the midwest. It would benefit grains crop and will help in its development.
On the other hand, France asked the European Union to approve farm aid to drought-hit farmers. Hot weather and drought conditions have hurt farms in France, and the expectations are for prolonged hard conditions for crops in the European Union largest producer.
Soybeans on consolidation mode after Friday’s jump
Prices of Soybean are trading negative on Monday as investors are digesting improved weather conditions in the United States. The grain is currently trading 0.15% negative at 8.955.
Previously in the day, soybeans fell to test the 8.900 area, where the unit found support. Then, it started to recover ground from proving the 9.000 level, but the oilseed was unable to keep gains, and it dropped to current levels.
In the case that soybean keeps its momentum, it will find resistances at the mentioned 9.000 level, then the critical 9.150 resistance area.
To the downside, 8.00 is the new short-term support. Below there, the 50-day moving average will be the next level to watch. Finally, 8.400 is the frontier.
Corn negative as it tests 4.180
Corn is trading down on the first day of the week after a brief pullback performed on Friday. On Monday, corn is testing the 4.180, a critical level that has been proved in the last three trading sessions.
Prices of corn are moving now at 4.196, 1.40% negative on the day. Technical conditions suggest more downside in the short term.
If the grain breaks below the 4.180, it will find next support at 4.065. Then, the psychological area of 4.000 will be the following buying zone.
To the upside, the unit needs to recover the 4.300 area before thinking in a sustainable recovery. 4.500 and 4.600 are the frontiers in the north.
Wheat consolidates lows below 5.000
Wheat is trading down on Monday amid improved weather conditions with the grain testing the 4.950, lows since June 6. The unit is consolidating losses below the 5.000 area after a failing break performed on Friday.
Below the 4.950, the unit will face the 200-day moving average at 4.865 as the next support. Then, freeway until 4.700.
This article was originally posted on FX Empire
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