The markets are trading slightly higher as it tries to recover from yesterday’s selloff. We opened firm coming back from the Christmas Holiday yesterday before a lack of willing buyers due to any export data. With a lack of fundamental inputs, the pros will turn to the charts for direction. Fund managers are basically flat the beans, wheat and liquidating some of their long position in corn. The question for today is whether the rally in the grain markets can be sustained?
Farmers and ranchers need to prepare for more losses in their next-biggest Asian market, Japan. Japan, unlike China, isn’t moving to block US goods by retaliating for the White House’s tariffs. Instead, it is taking the opposite approach and accelerating an ambitious market-opening agenda with more than three dozen countries and excluding the US. Beginning on December 30th the Japanese will begin cutting tariffs and easing quotas on products sold by some of America’s biggest agricultural competitors including Canada, Australia, New Zealand and Chile as part of the new 11-member Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
Have a Safe Day!