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Daily US grain report: traders await US-China trade agreement details this week

US grain futures were mixed in early US pre-market trading.

14 January 2020, at 12:31pm

Corn is near steady, while soybeans are around 1 cent lower and wheat is 2 to 3 cents higher.

The main event for the grain markets this week is the US and China signing their partial trade agreement on Wednesday in Washington, DC Reports Tuesday said China is committing to buy around $80 billion of US manufactured goods the next two years, as well as $50 billion in energy products and $35 billion in services. No agricultural breakdown was mentioned, which has somewhat deflated the grain market bulls.

Prices still in a trading range bound by the January high of $3.92 and the January low of $3.76 1/2. However, bulls now have some momentum to possibly push prices above the trading range
Prices still in a trading range bound by the January high of $3.92 and the January low of $3.76 1/2. However, bulls now have some momentum to possibly push prices above the trading range

© Jim Wyckoff

It appears the grain markets have factored into their futures prices the positive impact of the US-China partial trade deal - at least for now. Any positive surprises on specifics for China’s purchases of US ag products this week would likely lift the grain futures markets.

Look for choppy and sideways trading in the near term between the January high of $9.61 and the January low of $9.35 1/2
Look for choppy and sideways trading in the near term between the January high of $9.61 and the January low of $9.35 1/2

© Jim Wyckoff

Weather in South American corn and soybean regions is mostly benign at present, but some dry pockets are likely to develop in the coming weeks.

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