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Daily US grain report: market bulls hit the accelerator pushing prices to new highs

US grain market bulls hit the accelerator, pushing prices to new highs for the move amid a major weather market.

17 June 2019, at 2:53pm

US grain futures prices were solidly higher overnight, with corn up around 9 cents and at a five-year high in nearby futures, soybeans up around 16 cents and at a two-month high, with wheat up around 9 cents.

The major weather market in the grains continues to play out. Weekend rains occurred over much of the US Midwest, with more precipitation in the forecast over the next week, which will prevent farmers from seeding the remainder of the corn and soybean fields that are yet unplanted.

All eyes will be on the Monday afternoon USDA crop progress reports. Traders are looking for corn planting at 95 percent to 96 percent done versus 83 percent last week and 100 percent last year. US soybean planting is expected at 80 percent done compared to 60 percent last week and 96 percent last year at this time.

Cash corn and soybean basis levels have also narrowed (firmed up) to suggest commercial end-users are getting concerned about securing future supplies.

On the back burner of the grain markets at present is the US-China trade war that so far shows no signs of an end. President Trump last week said Chinese President Xi Jinping needs to meet with him in late June to get a deal done, or the US could slap more tariffs on Chinese goods.