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Daily US grain report: markets hit by Corn Belt weather forecasts

US grain futures prices were lower in overnight trading; corn down 3 to 5 cents, soybeans off around 6 cents and wheat around 3 cents lower.

16 July 2019, at 2:45pm

Weather in the US Corn Belt remains the driving force for price action at mid-summer, which is typical for this time of year. While mostly hot and dry weather in the US midsection is in the forecast for this week, some "pop-up" showers are providing relief to dry crops in some areas of the region. Also, a cool front is now expected to move through the Midwest US late in the weekend, likely bringing more substantial rainfall to the area.

Bulls fade fast early this week and need to rebound fast to keep uptrend prospects alive
Bulls fade fast early this week and need to rebound fast to keep uptrend prospects alive

© Jim Wyckoff

Also, Monday afternoon's USDA Weekly crop progress reports showed the US corn and soybean crops in slightly better condition than traders expected.

Bulls fade fast early this week and need to show power very soon to avoid serious chart damage
Bulls fade fast early this week and need to show power very soon to avoid serious chart damage

© Jim Wyckoff

Still, temperatures the rest of this week in the Corn Belt will be in the mid- to upper-90s, with even some 100-degree readings. With about 30 percent of the corn crop now in pollination, the high temperatures will likely curtail yield potential. And there are now some extended weather outlooks that say the Midwest will see hotter-and-drier-than-normal weather in late July into early August.

The "weather market" in the grains has taken a pause early this week, but veteran grain traders know the corn and soybean crops still have some rough waters ahead, especially since they are behind in development due to late planting.