Markets are higher this morning with corn up 4 and soybeans up 8. Fund managers are starting to reduce their short position as they begin to get a better understanding of the Phase 1 trade deal and the potential for a purchase of $40 Billion of US Ag products.
Both sides are still working on the language of the deal thoughts are that it could get signed in early 2020. Keep in mind this is the fifth time during the US/China trade war that a deal has been prematurely declared. Expect more bumps along the road before the deal is done and take advantage of the higher trade when presented because it may not last long.
A high pressure ridge is in place over Northern Brazil and Southern Argentina that will keep the forecast dry over much of the next 10 days. The extended outlook shows improved chances for remain across the dry areas. Extreme heat is lacking and the current pattern is not threatening to the crop.
Over the next couple weeks the markets could be very erratic with some shortened trading sessions and with traders exit early for the holidays. This could work for or against producers. My advice would be to take advantage of any spikes we see between now and the end of the year.
Have a Safe Day!