Wheat Consolidates Following Breakout

Grain prices are mixed on Thursday, with Wheat lower and corn and soybeans unchanged. Corn and wheat lead the charge higher earlier in the week, breaking out to fresh 9-month highs. Soybeans are lagging due to the lack of demand from China for U.S. soybeans due to trade tariff negotiations.

Corn Prices

Corn prices are consolidating after breaking out earlier in the week. Resistance is seen near the June 2016 highs at 4.39. Support is seen near the 10-day moving average at 3.88. Momentum is positive as the MACD (moving average convergence divergence) histogram is printing in the black with an upward sloping trajectory which points to higher prices.

Soybean Prices

China appears to have stopped purchasing U.S. soybeans according to Bunge the largest oilseed processor on the globe. China canceled a net 62,690 metric tons of U.S. soybean purchases in the two weeks ended April 19, according to USDA data for the current marketing year. China is the second largest market for U.S. agricultural exports, and soybeans have historically have been one of the top products sold to the Asian giant, according to the U.S. Department of Agriculture Foreign Agricultural Service.

Soybean prices are forming a wedge pattern, and consolidating as traders absorb trade tariff issues. Support is seen near the 10-day moving average at 1031, and then an upward sloping trend line near 1021. Resistance is seen near a downward sloping trend line near 1052. Momentum is neutral as the MACD (moving average convergence divergence) histogram prints near the zero index level with a flat trajectory which reflects consolidation.

Wheat Prices

Wheat prices consolidated after surging higher for 3-straight trading sessions. Resistance is seen near the July 2017 highs at 553. Support on wheat is seen near the 10-day moving average which coincides with the breakout level at 490. Momentum is positive as the MACD (moving average convergence divergence) histogram is printing in the black with an upward sloping trajectory which points to higher prices.

This article was originally posted on FX Empire

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