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

Wheat futures gained during early trade in Europe today, while corn and soybeans dropped. Traders await the official US Department of Agriculture weekly crops progress report for the seven days through June 8, due later today.

“There’s a little bit of concern on the winter crop in the U.S.,” Mark Keenan, head of Asia commodities research at Societe Generale SA, said for Bloomberg.

Last week the USDAs National Agricultural Statistics Service (NASS) revealed spring wheat planting had neared completion, while winter wheat was in mostly poor condition.

Wheat futures for July delivery on the Chicago Board of Trade stood at $6.204 per bushel, gaining 0.36% at 9:09 GMT today. Daily high and low were at $6.262 and $6.152 per bushel, respectively. Last week the contract declined by about 1%, reaching a three-month low of $6.030 per bushel.

Corn, soybeans

Last weeks NASS report revealed soybeans and corn crops planting had advanced considerably, reaching and exceeding figures from previous years. Quality of crops was also reported to have been mostly good.

Corn futures for July traded for $4.546 per bushel in Chicago at 9:13 GMT today, down 0.93%. Prices reached a daily high and low at $4.574 and $4.522 per bushel, respectively. Last week corn futures dropped about 1%, reaching a 3.1/2-month low of $4.470 per bushel.

Soybean futures for July traded for $14.526 per bushel in Chicago at 9:13 GMT today, losing 0.29%. Prices ranged between $14.696 and $14.524 per bushel, reaching a monthly low. Last week soybeans futures lost more than 2%.

Technical view

According to Binary Tribune’s daily analysis, wheat for July delivery on the CBOT will see its first resistance level at $6.241. If breached, the contract will advance to $6.299 and then to $6.405 per bushel. The first support points is estimated at $6.077. Should it be broken, wheat will test $5.971 and after that $5.913 per bushel.

Corn for July will have its first resistance at $4.634 and if it broken the contract will advance first to $4.678 and then to $4.760 per bushel. The first support level is calculated at $4.508. Should the contract breach that, it will probably continue down to $4.426. If both previous supports are penetrated corn will test $4.382 per bushel.

Soybeans for July have the front resistance level estimated at $14.636. If the contract manages to pass the first level, next resistance is expected at $14.702 and then $14.740 per bushel. Meanwhile, support is expected at $14.532, $14.494 and $14.428 per bushel.