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Daily US grain report: futures continue to rally amid serious planting delays

US grain futures prices were again solidly higher in overnight trading, with corn and wheat markets hitting three-month highs. Soybeans are higher, too, but in a follower’s mode.

21 May 2019, at 1:48pm

Wet, cool weather in the US Midwest continues to keep farmers out of their fields. Monday (20 May) evening’s US crop progress reports showed corn seeding at only 49 percent complete, compared to a five-year average of 80 percent done. This week’s corn-planting progress figure is the lowest on record, for this date. US soybean plantings were reported at 19 percent complete. The five-year average is 47 percent done.

The wet, cool weather is also causing concerns about the quality of the winter and spring wheat crops in the US.

© Jim Wyckoff

Below USDA trend-line yields for US corn, soybean and wheat crops are becoming more of a reality with each passing, wet, day. For the next week, rainy weather is expected for the US midsection.

A combination of short covering from big speculative funds who had record short futures positions up until recently, and bargain hunting are featured in the recent grain futures market rallies.

For at least the moment, US grain traders have pushed aside the US-China trade war that had pressured grain prices for so many months.

© Jim Wyckoff