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Daily US grain report: market bulls showing resilience

US grain futures prices were higher overnight. Corn was up around 2 1/2 cents, soybeans up around 9 cents and wheat up 5 to 6 cents.

22 October 2019, at 1:10pm

Grain trader attitudes remain upbeat early this week. The US-China trade negotiations appear to be progressing. President Trump said Monday afternoon the talks are "coming along very well," suggesting a trade agreement between the world's two largest economies could be signed as early as next month.

Trump also Monday said China would soon be buying US agricultural products.

Bulls working to keep price uptrend in place and have the chart advantage, but they need to show power this week to keep uptrend alive
Bulls working to keep price uptrend in place and have the chart advantage, but they need to show power this week to keep uptrend alive

The weekly USDA weekly crop progress report released Monday afternoon is deemed mostly bullish, showed the US corn condition at 56 percent good to excellent compared to 55 percent last week. Corn harvest is at just 30 percentcomplete as of Sunday, which was below expectations. The US soybean crop condition was rated at 54 percent good to excellent, the same as last week. Soybean harvest is at 46 percent complete, which is higher than expected. US spring wheat harvest is at 96 percent complete, which was close to market expectations. US winter wheat planting was at 77 percent complete.

Bulls have firm near-term technical advantage as price uptrend in place; price action likely to remain sideways-higher in near term
Bulls have firm near-term technical advantage as price uptrend in place; price action likely to remain sideways-higher in near term

More wet weather in the US Midwest this week will further hamper harvesting progress and also prompt some concerns about corn and soybean crop quality.

The recent weakening of the US dollar index is also a bullish underlying factor for the grain markets, as it makes US grains cheaper to purchase on the world market.