Grains trading outlook: wheat and corn futures record lowest price since February ahead of crops report

Grains futures traded lower today, ahead of the US weekly crops progress report due later today. Mostly dry weather probably made possible big advances for planting activities last week, while some showers in the southwestern Plains brought relief for the heat-weary crops, after the prolonged drought.

Wheat futures for July delivery on the Chicago Board of Trade stood at $6.210 per bushel, dropping 1.00% at 12:01 GMT today. Daily high and low were at $6.266 and $6.162 per bushel, respectively, reaching the lowest price in almost three months. Last week the contract lost 3.00%, as the US Department of Agriculture (USDA) reported well-progressing crops.

The USDAs National Agricultural Statistics Service (NASS) crop progress report for the week through May 25 revealed spring wheat planting advanced to 74% completion.

“Market concerns continued to fade around the timeliness of planting of spring wheat crops in the U.S. and Canada,” Australia & New Zealand Banking Group Ltd. analysts, cited by Bloomgerg, said in a report today. “The outlook is for continued favorable weather in Canada, with warmer weather and minimal showers positive for further rapid planting progress.”

The next NASS report, which will cover the week through June 1, is due later today.

Corn, Soybeans

Corn futures for July traded for $4.616 per bushel in Chicago at 11:57 GMT today, dropping 0.86%. Prices reached a daily high and low at $4.650 and $4.612 per bushel, respectively, recording the lowest level since February. Last week the contract dropped 1.57%, in light of favorable weather and crop progress.

Last weeks NASS report revealed corn planting was progressing well, and was at 88% completion.

Meanwhile, soybean futures for July traded for $14.890 per bushel in Chicago at 12:00 GMT today, losing 0.28%. Prices ranged between $14.900 and $14.782 per bushel. Last week the contract lost than 1.47%.

Soybeans planting was logged at 59% completion for the week through May 25.

“Corn and soybean planting showed a further increase, while the prospects for improving crop conditions are also leading to easing, with the announcement of new rains expected for the Corn Belt,” Paris-based farm advisor Agritel wrote, according to Bloomberg.

Technical view

According to Binary Tribune’s daily analysis, wheat for July delivery on the CBOT will see its first resistance level at $6.343. If breached, the contract will advance to $6.415 and then to $6.459 per bushel. The first support points is estimated at $6.227. Should it be broken, wheat will test $6.183 and after that $6.111 per bushel.

Corn for July will have its first resistance at $4.710 and if it broken the contract will advance first to $4.764 and then to $4.940 per bushel. The first support level is calculated at $4.626. Should the contract breach that, it will probably continue down to $4.596. If both previous supports are penetrated corn will test $4.542 per bushel.

Soybeans for July have the front resistance level estimated at $15.027. If the contract manages to pass the first level, next resistance is expected at $15.123 and then $15.181 per bushel. Meanwhile, support is expected at $14.873, $14.815 and $14.719 per bushel.