ShapeShapeauthorShapechevroncrossShapeShapeShapeGrouphamburgerhomeGroupmagnifyShapeShapeShaperssShape

Daily US grain report: traders focused on cool weather heading into September

US grain futures prices were mixed in overnight trading. Corn was up 2 to 3 cents, soybeans up around 7 cents and wheat steady to off 5 cents.

30 August 2019, at 6:46pm

The corn market is seeing some support from a move by the Trump administration to boost corn ethanol usage-a move to assuage farmers who have been hurt badly by the US-China trade war. Grain traders have not reacted much to the late-week ratcheting down in trade tensions between the world's two largest economies. They are more interested in actions than in words.

Bears still have firm chart advantage amid price downtrend. However, more gains in near term would suggest a market bottom, or "harvest low" is in place
Bears still have firm chart advantage amid price downtrend. However, more gains in near term would suggest a market bottom, or "harvest low" is in place

© Jim Wyckoff

Cooler weather forecasts for the Corn Belt in the next week and some longer-term forecasts for an early frost in the region may be limiting selling pressure in the grains heading into the long holiday weekend. An early frost would be especially damaging to the late-planted corn and soybean crops.

Price downtrend still in place and bears have overall chart advantage. More good gains in near term would suggest a market bottom or "harvest low" is in place
Price downtrend still in place and bears have overall chart advantage. More good gains in near term would suggest a market bottom or "harvest low" is in place

© Jim Wyckoff

Technical charts remain bearish for the grains, which is keeping the big speculative "fund" traders playing the short side of the futures markets.