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Daily US grain report: US grain futures likely to see limited selling interest in near term

US grain futures prices were mixed in overnight trading.

29 August 2019, at 2:41pm

Corn was up around 1 cent, soybeans up around 4 cents and wheat off about 2 cents.

Grain market reacted little to the overnight news reports that Chinese government officials (from the Commerce Ministry) have indicated they will not retaliate for the latest round of US tariffs imposed on imports from China and said that the two countries remain in communication on the trade dispute matter.

Bears still have firm chart advantage amid price downtrend, however, more gains this week would suggest a market bottom or "harvest low" is in place
Bears still have firm chart advantage amid price downtrend, however, more gains this week would suggest a market bottom or "harvest low" is in place

© Jim Wyckoff

Traders are awaiting the weekly USDA export sales report out Thursday morning. US corn sales of 400,000 to 1,000,000 metric tons (MT) are expected. Soybean sales of 150,000 to 1,000,000 MT are forecast, while US wheat sales of 250,000 to 700,000 MT are projected.

Cooler weather in the Corn Belt at present and some longer-term forecasts for an early frost in the region could limit selling pressure in the grains heading into the long holiday weekend. An early frost would be especially damaging to the late-planted corn and soybean crops.

Price downtrend still in place and bears have overall chart advantage; more good gains this week would suggest a market bottom or "harvest low" is in place
Price downtrend still in place and bears have overall chart advantage; more good gains this week would suggest a market bottom or "harvest low" is in place

© Jim Wyckoff

Veteran grain market watchers also know that this is the time of year when "harvest lows" can make an early visit to the grain markets.