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Daily US grain report: market bulls out of the gate in good fashion Monday

US grain futures prices were higher in the overnight trade Monday (8 July).

8 July 2019, at 3:35pm

Corn was up 5 to 8 cents, wheat up 2 to 4 cents and soybeans up around 4 cents.

Focus to start the trading week will be Monday afternoon's USDA crop progress reports and the corn and soybean crop ratings. The very slow planting pace for both crops has them behind normal in development.

Price downtrend in place; bulls in trouble and need to show power soon to avoid more serious technical damage - corn will have to lead a rally in soybeans in the near term
Price downtrend in place; bulls in trouble and need to show power soon to avoid more serious technical damage - corn will have to lead a rally in soybeans in the near term

© Jim Wyckoff

Bulls regain upside momentum with recent gains; more upside early this week would suggest a retest of the June high, or above
Bulls regain upside momentum with recent gains; more upside early this week would suggest a retest of the June high, or above

© Jim Wyckoff

Weather in the US Midwest is a mixed bag. More seasonal weather in the region has occurred the past week, which is bearish for prices. However, there are some weather forecasters calling for the building of a high-pressure ridge over the Midwest next week. That means higher temperatures and less rainfall. High-pressure ridges are also called "heat domes".

Corn has been the upside leader in grain prices for several weeks. Corn has begun to rebound but soybeans and wheat have lagged. It's likely that more gains in corn this week would pull soybean and wheat prices higher, too.

Historically, the early-July time frame is critical for the grain markets, as weather patterns in the US Midwest can change as mid-summer approaches.

With the corn and soybeans behind in growth development this year, weather forecasts for the next two to three weeks will produce extra-sensitive reactions from grain traders.