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Daily US grain report: futures see short-covering gains after upbeat US comments on China trade

US grain futures prices were higher in overnight trading, on short covering from recent selling pressure. Corn was up around 5 to 6 cents, soybeans up around 7 cents and wheat up 4 to 6 cents.

10 September 2019, at 1:41pm

Grain futures market bulls are also encouraged by positive US-China trade comments coming from US Treasury Secretary Mnuchin late Monday. He said President Trump does not expect a US economic recession due in part to an expected trade agreement with China. Mnuchin said a lot of progress has been made in the trade negotiations and that China trade officials are coming to Washington for talks in October.

Bears have solid chart advantage amid price downtrend. Still more downside likely in near term
Bears have solid chart advantage amid price downtrend. Still more downside likely in near term

© Jim Wyckoff

The weekly USDA weekly crop progress reports, released Monday afternoon, showed a lower-than-expected corn condition rating at 55 percent good to excellent compared to 58 percent last week and a 72 percent five-year average. Those numbers also supported buying interest in corn. The soybean crop condition rating remained unchanged at 55 percent good to excellent, which was expected.

Price downtrend still in place and bears have firm overall chart advantage. more downside likely in near term
Price downtrend still in place and bears have firm overall chart advantage. more downside likely in near term

© Jim Wyckoff

The data point of the week for the US grain markets is Thursday's monthly USDA supply and demand report, including new government estimates of the size of the US crops.

Weather in the US Midwest remains non-threatening, including no strong signs of an early hard frost that would kill the still-maturing corn and soybean crops.