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Daily US grain report: shine fades on US-China trade agreement as grain trading turns mixed

US grain futures prices narrowly mixed overnight. Corn was down 1 to 2 cents, soybeans up around 1 1/2 cents and wheat 1 to 2 cents up.

14 October 2019, at 4:27pm

After having the weekend to ponder the matter traders and investors now reckon the agreement is fraught with potholes that are likely derail it. There are now reports China wants more talks before even signing the Phase 1 agreement. "The devil is in the details," as the saying goes.

Price uptrend in place and bulls have the power to suggest it can be sustained
Price uptrend in place and bulls have the power to suggest it can be sustained

© Jim Wyckoff

The weekly USDA crop progress report Monday afternoon is expected to show US corn harvest at 23 percent complete versus 15 percent complete last week and 38 percent last year. US soybean harvest is seen at 25 percent complete versus 5 percent last week and 38 percent last year at this time.

Bulls have firm near-term technical advantage as price uptrend in place. Price action likely to remain sideways-higher in near term
Bulls have firm near-term technical advantage as price uptrend in place. Price action likely to remain sideways-higher in near term

© Jim Wyckoff

A winter storm that hit the US plains and northern Midwest over the weekend, along with freezing temperatures over much of the Corn Belt, will further hamper the US corn and soybean harvest, which is already behind schedule.

Recent price action in corn, wheat and soybeans suggests harvest lows are in place and that prices can trend sideways-to-higher into the end of the year.