News that EU and US are Working to Avoid Further Trade Tension Supports the Grains

July 27, 2018 8:42AM CDT

The soybean market rallied this week on the announcement of a farm aid program and on the news EU and US are closer to a trade deal in which the EU will purchase more US soybeans.  However, neither of these developing factors seem to have too much weight behind them when deciding which way the beans move from here.  Europe was already buying US soybeans, which are priced sharply below Brazil prices.  The aid program indicates that the US is not planning to give in and the trade war may be a lengthy one.  Resistance comes in at 884, with support at 861 and 852.

Spillover support from the soybean news between US and EU has helped to support the corn market, and the grains as a whole.  Another factor supporting the corn market was a solid week of export sales, coming in at 338,500 tonnes for the current marketing year and 747,500 for the next marketing year.  Weather conditions have been nearly ideal for most of the US corn belt, but there are a few spots that need rain in Iowa, Missouri and Southern Illinois.  Resistance comes in at 378 and 381 with support coming in at 373 and 371.

Soybeans Nov '18 Daily Chart

Soybeans Nov '18 Daily Chart

Corn Dec '18 Daily Chart

Corn Dec '18 Daily Chart

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