Commodities were showing some life this morning after President Trumps early morning tweet calling Chinese President Xi a “great leader representing a great country and that talks are continuing”. This is a complete 180 from Friday’s comments where he called Xi our enemy. With nothing else to grab headlines traders are looking for something to give them direction and this was it overnight. In other trade news the US and Japan appear to have come to an agreement over the weekend which should allow for increased US products to be exported to Japan. (Agricultural, Industrial products and digital commerce)
Last week’s Pro Farmer tour pegged the US corn crop at 163.3 bpa versus the latest USDA forecast of 169.5. On average the Pro Farmer tour has been 3 bpa below the USDA final number in January. Last week’s tour results have had very little impact on traders as demand continues to be the issue regardless of what yields come out this year. Poor ethanol margins that have resulted in plants slowing down or shutting down in the east over the last couple months is now hitting WI. There are official and unofficial reports of plants that have slowed down in the Badger state due to poor margins.
Have a Safe Day!