Daily US grain report: traders do not want to go home short
US grain futures prices were firmer again overnight, with corn up 3 to 5 cents, soybeans up around 3 cents and wheat 1 to 2 cents higher.
14 June 2019
4 minute read
By: US grain futures prices were firmer again overnight, with corn up 3 to 5 cents, soybeans up around 3 cents and wheat 1 to 2 cents higher. Grain traders do not want to go home short the futures on a Friday (14 June) afternoon during a serious weather market in the grains.
Weather forecasts for the US Midwest in the coming days call for wetter and cooler conditions, which is not beneficial for the newly planted corn and soybean crops, or for farmers who have yet to get their wet fields seeded.
Bulls have solid near-term technical advantage and gain more power by pushing prices above what was strong resistance at $4.38. Now, upside is open to a run at $5.00. © Jim Wyckoff
Cash corn and soybean basis levels have also narrowed (firmed up) to suggest commercial end-users are starting to get just a bit concerned about future supplies.
Bulls step up and show power to keep uptrend alive. Push above early-June high would suggest solid leg up in prices. Soybeans likely to follow corn price action in near term. © Jim Wyckoff
Look for the big, speculative “fund” futures traders who had been short the grains to continue to unwind their losing bets, to push grain futures prices higher. Also, the funds are likely to be now adding new long positions in the grains as the chart postures for those markets now look more bullish.
