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Daily US grain report: markets pullback on normal pause in a weather market

5 June 2019, at 1:21pm

US grain futures prices were lower overnight on some profit taking from recent gains and a bit drier weather forecasts for the US Midwest in the coming days.

Corn prices were down around 7 cents, soybeans off about 5 cents and wheat was down 10 to 15 cents.

Prices are pausing at mid-week
Prices are pausing at mid-week

© Jim Wyckoff

Make no mistake: this is still a serious weather market in the grains and all trading days in weather markets are not up. There is still keen uncertainty regarding how many acres of corn and soybeans will get planted in the US midsection.

Also, technical chart watchers say the recent corrective, pausing price action—especially in corn and soybeans—could be viewed as a positive and suggesting more gains are coming. For wheat, the technicals have slipped this week and the bulls need to step up and show fresh power yet this week, or else a near-term market top could be in place.

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The US trade rows with China and Mexico are still providing some uncertainty in the grain markets, which is bearish. However, trader sentiment on that front may be improving a bit at mid-week as reports said Mexico will meet with US officials soon regarding illegal immigration.

Bean bulls have an advantage as the price is on an upward trend
Bean bulls have an advantage as the price is on an upward trend

© Jim Wyckoff