Grain prices higher today with short covering ahead of the USDA crop report on Monday and very strong outside markets provided additional support.
Weekly Price Summary
Grain Market News
7-Day Observed Precipitation
Weather is becoming less of a factor but we are still in the final filling stage so we will continue to monitor weather.
This week has been mostly dry for about 2/3 of the U.S. corn and bean belt.
We did start seeing some rains develop in the Dakotas and central Minnesota late last night and early this morning.
Some of that rain is going to filter southward giving portions of Nebraska and Iowa a chance for rain.
Before this frontal passed through, we did have to endure another 5-6 days of dryness, that’s why we believe crop condition ratings could slip lower.
The eastern belt and even portions of the central belt have had very favorable conditions.
Good moisture for most areas and temperatures mostly in the 80s has been ideal which has extended the growing season.
In the western belt and the plains heat combined with dryness is pushing crops very quickly to maturity.
Our current conditions show a cold front passing through South Dakota and southern Minnesota, that front will continue to inch southward giving Nebraska and Iowa a chance of rain.
Ahead of that front is warmer temperatures and behind the front much cooler.
7-Day Precipitation Forecast
The forecast shows that additional rain coming into Nebraska and Iowa.
It’s getting late for rain to do much good but certainly any rain would be welcomed in western Iowa and almost all of Nebraska.
A warmer than normal profile all the way out through September 22nd with somewhat of a pattern change.
Wetter to the north and west and dryer to the south and east in the 6-10 and a similar outlook in the 8-14.
Grain Market News
U.S. Yield 2022
U.S. Ending Stocks
World Ending Stocks
December Corn Chart
Corn prices had a strong close today, keeping the overall uptrend intact.
The technical indicators are very overbought, but they don’t tell us the market has peaked just shows the market is positioned for a correction with bearish news.
Overhead resistance is right up around the $7 level and chart support would come in around 6.50.
November Soybean Chart
Soybeans after breaking through chart support the last couple days and breaking below the 13.76 level down to 13.73 yesterday, beans bounced back nicely closing at 14.12 today.
This establishes somewhat of a pennant formation, that’s where you have a pattern of lower highs but higher lows.
We have a chart low at 13.56 combined with a gap down to 13.49, that would be chart support of the market got bearish news.
September KC Wheat Chart
Wheat prices have been in a bottoming faze for the past 2 months, but this week wheat is showing signs of wanting to break out to the upside.
Today we rallied and closed at 9.29 the highest close going back to early July, from a chart perspective this market certainly looks like it’s trying to continue to form that U shape bottom.
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