Grains trading outlook: wheat, corn and soybeans futures decline ahead of US crops report as exchanges reopen

Grains futures were pressured by easing weather conditions for top-exporter US, ahead of the Department of Agricultures weekly report on crops progress. US exchanges reopened after the three-day weekend today, for wheat and corn to reach multi-month lows, after further drops were recorded last week. Soybeans also traded lower, after logging a sizable gain last week.

Wheat futures for July delivery on the Chicago Board of Trade stood at $6.426 per bushel, dropping 1.49% at 11:48 GMT today. Daily high and low were at $6.480 and $6.412 per bushel, respectively, reaching the lowest price in almost 8 weeks. On Friday the contract closed for a weekly loss of more than 3%.

Weather reports forecast mostly favorable conditions for planting in the US this week, with only scattered and mild showers in the Midwest and northern Plains, and the Delta. Meanwhile, moderate-to-heavy rains projected for the southern Plains bode well for the heat-weary crops, after the prolonged drought. Elsewhere, southwestern Russia and Ukraine are set for more heat this week, which could potentially damage crops.

The US National Agricultural Statistics Service (NASS) will release its weekly crops report for the week through May 19 later today.

“Today’s report may show planting is close to being completed in the U.S. following a stretch of favorable, dry and warm weather last week,” said for Bloomberg Vyanne Lai, agribusiness economist at National Australia Bank Ltd. “Global supply conditions are comfortable.”

Last week the NASS report revealed slightly lagging wheat planting until May 12, while 44% of winter crops were in poor or very poor condition. Meanwhile, corn planting was proceeding relatively well, leveling historic averages of 73% completion. Soybeans were also progressing well, recording 33% planting completion, in line with averages.

Corn futures for July traded for $4.716 per bushel in Chicago at 11:02 GMT today, dropping 1.31%. Prices reached a daily high and low at $4.750 and $4.700 per bushel, respectively, recording the deepest trough in twelve weeks. Last week the contract lost more than 1.3%.

Soybean futures for July traded for $15.002 per bushel in Chicago at 11:52 GMT today, losing 1.01%. Prices ranged between $15.154 and $15.000 per bushel. Last week the contract added more than 3%.

Technical view

According to Binary Tribune’s daily analysis, wheat for July delivery on the CBOT will see its first resistance level at $6.601. If breached, the contract will advance to $6.679 and then to $6.723 per bushel. The first support points is estimated at $6.479. Should it be broken, wheat will test $6.435 and after that $6.357 per bushel.

Corn will have resistance at $4.805, $4.829 and $4.855 per bushel, while support levels are calculated at $4.755, $4.729 and $4.705 per bushel.

Soybeans will have resistance at $15.255, $15.357 and $15.423 per bushel, while support is expected at $15.087, $15.021 and $14.919 per bushel.