ShapeShapeauthorShapechevroncrossShapeShapeShapeGrouphamburgerhomeGroupmagnifyShapeShapeShaperssShape

Daily US grain report: market bulls work to stabilise prices - more heavy lifting to do

US grain futures prices were firmer overnight as the bulls try to stabilise their flagging markets. Corn is up 3 to 6 cents, soybeans up 3 to 4 cents and wheat up 2 to 4 cents.

3 July 2019, at 2:19pm

The recent price downdrafts have produced serious near-term technical damage in corn, soybean and wheat futures by negating their price uptrends on the daily charts.

Serious near-term chart damage inflicted - price uptrend negated; bulls working to stabilise market but have heavy lifting to do
Serious near-term chart damage inflicted - price uptrend negated; bulls working to stabilise market but have heavy lifting to do

© Jim Wyckoff

Price uptrend line negated; bulls in trouble and need to show power soon to avoid more serious technical damage
Price uptrend line negated; bulls in trouble and need to show power soon to avoid more serious technical damage

© Jim Wyckoff

Weather in the midwest US remains bearish amid timely rains and sunny, warm conditions-and more of the same in the forecasts. However, the corn and soybean crops are off to generally very late starts and need a near-perfect growing season to reach USDA "trend-line" yields. There is at least one weather forecaster now calling for a US Midwest growing season that will not be extended this fall, due to likely cooler weather setting in earlier.

Focus is also on demand for US grains, which is presently tepid. China has again promised to buy more US ag products, but traders want to see actual sales.

Trading on Friday could be extra important. Historically, the first trading day for the grains after the US Independence Day holiday can be pivotal.

Grain price trends can be reversed or existing trends accelerate during the critical early-July timeframe.