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Daily US grain report: grain futures continue to rally amid serious planting delays

US grain futures prices were again solidly higher in overnight trading, with corn and wheat markets hitting three-month highs.

21 May 2019, at 1:52pm

US grain futures prices were again solidly higher in overnight trading, with corn and wheat markets hitting three-month highs. Soybeans are higher, too, but in a follower’s mode.

Wet, cool weather in the US Midwest continues to keep farmers out of their fields. Monday evening’s US crop progress reports showed corn seeding at only 49 percent complete, compared to a five-year average of 80 percent done. This week’s corn-planting progress figure is the lowest on record, for this date. US soybean plantings were reported at 19 percent complete. The five-year average is 47 percent done.

Strong price surge amid a "weather market" has bulls in control, however, prices are still short-term overbought and due for a healthy pause
Strong price surge amid a "weather market" has bulls in control, however, prices are still short-term overbought and due for a healthy pause

The wet, cool weather is also causing concerns about the quality of the winter and spring wheat crops in the US.

Below USDA trend-line yields for US corn, soybean and wheat crops are becoming more of a reality with each passing wet day. For the next week, rainy weather is expected for the US midsection.

Recent gains suggest the market has hit bottom, however, bean bulls are still wobbly and need support from corn and wheat in the short term
Recent gains suggest the market has hit bottom, however, bean bulls are still wobbly and need support from corn and wheat in the short term

A combination of short covering from big speculative funds who had record short futures positions up until recently, as well as bargain hunting are featured in the recent grain futures market rallies.

At least for the moment, US grain traders have pushed aside the US-China trade war that had pressured grain prices for so many months.