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Daily US grain report: "Turnaround Tuesday" in US grain futures

US grain futures prices were firmer in overnight trading. Corn was up 2 to 3 cents, soybeans up 2 to 3 cents, and wheat 3 to 4 cents higher.

23 July 2019, at 2:30pm

It's a "Turnaround Tuesday" phenomenon in the grain markets, following Monday's solid losses.

Bullish US grain traders are encouraged by reports President Trump met with US technology companies Monday at the White House, regarding easing US sanctions on China's big communications firm, Huawei. This is being deemed a big positive on the US-China trade front, suggesting the US wants to move the negotiations forward.

Midwest US weather has turned benign for the corn and soybean crops, and that still favours the bearish camp. The lower temperatures this week will aid the critical "pollination" growth phase of the US corn crop.

Bulls in serious trouble and need to step up this week. Drop below the July low of $4.20 1/2 would produce serious chart damage and suggest downtrend
Bulls in serious trouble and need to step up this week. Drop below the July low of $4.20 1/2 would produce serious chart damage and suggest downtrend

© Jim Wyckoff

USDA weekly crop progress data released Monday afternoon showed the US corn condition rating at a lower-than-expected 57 percent in the good to excellent categories versus 58 percent last week. The US soybean condition rating was 54 percent good to excellent, which is unchanged from last week's USDA reading and in line with market expectations. The US spring wheat condition ratings were 76 percent good to excellent, which was in line with trader expectations. These USDA weekly readings slightly favour the bullish camp.

Bulls need to show strength this week. Drop below July low of $8.90 1/2 would produce serious near-term chart damage and suggest price downtrend
Bulls need to show strength this week. Drop below July low of $8.90 1/2 would produce serious near-term chart damage and suggest price downtrend

© Jim Wyckoff