January soybean futures managed to rebound yesterday on positive trade headlines and technical relief.
January soybeans closed lower for their 8th consecutive session on the back of fund selling and negative reports on trade with China. President Trump stated that it may be better if they wait to make a deal after the 2020 election.
Wheat futures caught a bid on Friday on decent volume and many reporting concerns over winter weather sweeping through the Midwest. The fundamentals are relatively mute in wheat as it appears money flow and technicals are the driving factors near term.
Futures continued to tumble on technical weakness and favorable weather in South America, which is expected to have a big crop. There have been some whispers from an analyst at a large bank that a Phase 1 trade deal could get done over the weekend.
Yesterday’s weekly Crop Progress report showed that corn harvest is 84% complete, 1% behind expectations and 11% behind the 5-year average.
January soybean futures had a technical breakdown last week after reports of the Phase 1 trade deal being delayed, this shouldn’t come as a big shock.
Oliver Sloup breaks down the trading day before WASDE report in grain futures markets.
January soybeans broke lower yesterday on bearish headlines around trade with China
December corn futures were able to find some footing yesterday with help from a flash sale of 191,000 metric tons of corn to an “Unknown” destination.
January soybeans broke down on Monday and spent the rest of the week consolidating as market participants searched for new news to offer more conviction in the direction of the market. With harvest nearing 90% complete, headlines will largely be on the progress, or lack thereof, on the U.S. and China trade talks.