Daily US grain report: traders more upbeat on US-China trade deal specifics

US grain futures prices were firmer overnight. Corn was up around 1 cent, soybeans up around 2 cents and wheat up around 3 cents.

20 December 2019

7 minute read

By: Jim Wyckoff

North America

The grain markets have received a boost as the US Congress this week ratified a US trade agreement with Mexico and Canada that will boost agricultural trade between all three. Also, comments from both US and China trade officials that that the trade deal will come to fruition soon, including China honoring its pledge to buy $40 billion in US ag products, has lifted grain traders’ spirits late this week.

Bulls pause late this week but need to show fresh power soon or risk sideways and choppy trading in the weeks ahead
© Jim Wyckoff

Bullish grain traders are now looking to the daily USDA export sales announcements for bigger purchases from China.

With grain prices pushing to multi-week highs this week, their near-term technical postures have turned more bullish--especially for wheat and soybeans.

Bulls still have advantage as price uptrend line in place; path of least resistance is sideways-higher in near term
© Jim Wyckoff

And there are outside markets that are favoring the grain market bulls, including crude oil prices pushing to multi-month highs this week, while the US dollar index has backed well down from its yearly high scored in early October.