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US grain market report: markets see pressure early Friday, but traders don’t want to go into the weekend short

7 June 2019, at 1:24pm

US grain futures prices were lower overnight, with corn down around 4 cents, soybeans off 5 to 6 cents and wheat down around 5 to 7 cents.

The grain markets have seen choppier price action this week.

US corn belt weather patterns have turned drier for the next few days, which will allow farmers to really pick up the pace of planting corn and soybeans, before some more wet weather for the region returns by later next week.

Prices are pausing this week, which is not bearish. Bulls still have near-term technical advantage.
Prices are pausing this week, which is not bearish. Bulls still have near-term technical advantage.

© Jim Wyckoff

Even as the weather turns drier, the record or near-record slow planting pace for US corn and soybeans is likely to reduce production totals this fall. And traders do not want to go home too exposed on the short side of the grain markets on Friday because summertime weather forecasts can and do change quickly.

Bean bulls have slight chart advantage amid price uptrend but need to show fresh power very soon to keep it.
Bean bulls have slight chart advantage amid price uptrend but need to show fresh power very soon to keep it.

© Jim Wyckoff

Traders are awaiting next week’s latest crop progress reports (Monday) and the monthly USDA supply and demand report (Tuesday) that will update US and world grain balance sheets.

Grain traders are still watching the trade talks taking place between the US and Mexico, and the US and China, but no significant, markets-moving news has occurred on those fronts.