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Daily US grain report: grain futures mixed to start the month of June; weather in Midwest still in focus

3 June 2019, at 1:48pm

US grain futures prices were narrowly mixed overnight, with wheat posting good gains and corn and soybeans steady to slightly lower.

The recent strong price rallies are taking a breather to start the trading week. The new US-Mexico trade tensions are also giving the grain market bulls some pause.

Trade tensions between the US and Mexico are impacting the markets
Trade tensions between the US and Mexico are impacting the markets

© Jim Wyckoff

The US corn belt saw a drier weekend that improved field conditions for some farmers. However, many areas in the region remain very wet. Scattered rains are expected to occur in the region Tuesday and continue through the weekend. Temperatures are expected to be only between 20C - 30C, which is not warm enough for quick drying of soils. Wheat country in the US also remains too wet. Meantime, Canadian Prairies saw high temperatures and high winds over the weekend, to add to concerns about drought in the region and very stressed wheat conditions.

Drought conditions on the Canadian Prairies could influence prices
Drought conditions on the Canadian Prairies could influence prices

© Jim Wyckoff

Don't be surprised to see grain market bulls come back to life early this week. There are still likely some large, speculative "fund" traders who are still short the grain futures and will be liquidating those positions this week. Technical postures for the grain futures remain near-term bullish.