Market Overview

Friday's Market Minute: Grain Pain After Trade Truce

Share:
Friday's Market Minute: Grain Pain After Trade Truce

Soybean bulls hoping for an upward jolt to break out of a recent consolidation range likely were disappointed this week. Agricultural futures moved lower this week, despite the Trade War Phase 1 deal between the U.S. and China as well as the passage of the USMCA agreement in the Senate – deals that should result in greater exports for U.S. producers.

However, the /ZS futures contract wilted on Wednesday amid China’s pledge to buy $40 billion of U.S. agricultural products as part of the deal, breaking support near 940 before stabilizing near 923 this morning after a roughly 2% decline. Corn futures also made a dismal showing on Thursday, as sideways movement that has persisted since mid-December was shaken up with a 2.9% drop that took out last week’s lows.

The /ZC contract crossed and closed far below its 21/64/252 exponential moving averages as well in one fell swoop, which suggests continued weakness may be on the horizon.

Image by Євген Литвиненко from Pixabay

Posted-In: Government News Regulations Emerging Market ETFs Commodities Global Markets ETFs Best of Benzinga

 

Related Articles

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com