Grain markets have opened steady this morning with corn down 1 and soybeans up 3. The watch continues for any additional reports of Chinese business. Most traders appeared to be disappointed with last week’s totals but remain optimistic about future sales. The chance of any big export numbers in the coming months is limited as the deals are still not worked out and South American bean harvest is only a couple months away from hitting the ports. The Trump administration has set March 2nd as the firm deadline for arriving at a deal with China. If nothing is completed by that date additional tariffs of $200 billion will be imposed on Chinese goods.
There are still no firm details on the 2nd part of the MFP payment to farmers to help offset the trade war with China. Some traders are speculating that an announcement will come in conjunction with the signing of the new farm bill as early as next week.
We continue to be stuck in a sideways trading range between $3.80 – 3.88 for March futures. Barring any news on trade talks this range should hold thru the end of the year.
Have a Safe Day!