Daily US grain report: futures prices firmer on upbeat US-China trade talk

US grain futures prices were firmer in early trading today (26 September). Corn was up around 1 cent, soybeans about 4 cents higher and wheat about 7 cents higher.
calendar icon 26 September 2019
clock icon 4 minute read

The upbeat US-China trade rhetoric late this week is bullish for grains. The up-and-down US-China trade rhetoric is presently in "up" mode following positive comments on the matter from President Trump on Wednesday. Then on Thursday China's Commerce Ministry said Chinese companies will buy "sizeable amounts" of US soybeans and pork ahead of high-level trade discussions scheduled to take place in October.

Bears have overall chart advantage but market low likely in place and bulls working on price uptrend now
Bears have overall chart advantage but market low likely in place and bulls working on price uptrend now

© Jim Wyckoff

Weather in the US Corn Belt has been too wet in some areas and too dry in others, which is prompting some concerns about crop quality as harvest is under way. The northern US plains and the Canadian prairies have also been too wet for ideal crop conditions.

Bulls and bears on level overall near-term technical playing field amid recent choppy trading
Bulls and bears on level overall near-term technical playing field amid recent choppy trading

© Jim Wyckoff

The strong US dollar on the foreign exchange market (the US dollar index is near the high for the year at present) is an underlying negative for the US grains, making them more expensive on the world market. US grain exports have already been anaemic and the strong greenback won't help matters.

Traders will keenly focus on Thursday's USDA weekly export sales report.

© 2000 - 2022 - Global Ag Media. All Rights Reserved | No part of this site may be reproduced without permission.