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Daily US grain report: markets weaker and pausing before big data day

Grain markets hesitate before USDA releases data on Friday (28 June).

26 June 2019, at 4:17pm

US grain futures prices were weaker overnight, on normal downside corrections in existing price uptrends and as the markets pause ahead of a very important data set being released from USDA late Friday morning (28 June 2019). Corn is down around 3 cents, soybeans off around 3 cents and wheat 3 to 4 cents lower.

Bulls have overall near-term technical advantage. Uptrend still in place as market pauses ahead of key USDA data Friday
Bulls have overall near-term technical advantage. Uptrend still in place as market pauses ahead of key USDA data Friday

© Jim Wyckoff

The grain markets are likely to be subdued until the release Friday of updated US acreage and quarterly grain stocks reports from the Agriculture Department. Forecasts for US corn seedings are for around 86.5 million acres compared to 92.792 million acres in the March USDA forecast. Soybean plantings are forecast at around 84.5 million acres compared to 84.617 million acres in USDA’s March forecast. All wheat seedings are forecast around 45.5 million acres compared to 45.754 million acres in USDA’s March estimate.

Friday’s acreage report will be one of the most important grain market reports of the year, due to the uncertainty surrounding it.

Bulls have overall near-term technical advantage amid price uptrend. Market is pausing ahead of key USDA data Friday (28 June)
Bulls have overall near-term technical advantage amid price uptrend. Market is pausing ahead of key USDA data Friday (28 June)

© Jim Wyckoff

US Corn Belt weather has turned mostly neutral if not a bit bearish for corn and soybeans now. Some drier conditions later this week will benefit the crops.

Also late this week the US and Chinese presidents meet to discuss trade. Ideas are widely mixed on the outcome of that meeting, which could have major implications for grain prices. Most are leaning toward the meeting producing not much other than a pledge that both sides will keep talking on the matter.