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Daily US grain report: markets still under pressure

US grain futures prices were lower again overnight, with corn down around 1 cent, soybeans off around 4 cents and wheat about 4 cents.

20 June 2019, at 1:16pm

More profit taking from recent gains from the shorter-term futures traders is featured, as well as downside corrections, following recent solid gains. So far no serious chart damage has been inflicted and near-term price uptrends are still in place.

Traders will closely examine today’s weekly USDA export sales report for the grains.

Midwest US weather still leans bullish for the grains. Rainy conditions are forecast for much of the US Midwest for the rest of this week.

Focus is turning to the June 28 USDA US planted acreage report. That report will be one of the most important grain market reports of the year. Grain analysts are saying it’s wide open on the numbers the Agriculture Department assigns to corn and soybean planted acres. This makes the report a big unknown and likely to really gyrate the grain futures markets in the immediate aftermath of its release. Corn and soybean prices could either trade sharply higher or sharply lower on the acreage numbers.

Importantly, the raw commodity sector, including the grains, got a fundamental boost by the Federal Reserve and the European Central Bank moving toward more accommodative monetary policies this week. The US dollar has depreciated, making US grains more competitive on world markets, and will provide more liquidity in the financial system, which will make commodities more attractive for investors. Already, gold and crude oil prices are in strong rally modes following this week’s central bank news.