Markets are higher this morning on comments from China and reports from the UN regarding locusts.
The UN issued a warning regarding a large swarm of locusts that have migrating across East Africa with fears of them spreading to India and South East Asia. The migration which has already traveled across most of Africa, the Red Sea and a substantial part of the subcontinent, reached close to China’s Southwestern border over the weekend according to reports.
China has committed to boosting its purchases of goods and services from the US by 200 billion dollars as part of the two year agreement. The US goods eligible for tariff exemptions include agriculture and energy products like pork, beef, soybeans, liquefied nature gas and crude oil. It also looks like exemptions will be imposed on denatured ethanol, wheat, corn and sorghum. Chinese firms can start submitting applications on March 2nd for duty free import licenses.
Brazil is going to see above normal rains over the next 10 days. Temps will be on the cooler side, but this forecast is wetter than last week. Southern Argentina will be drier going out into Feb 28th. The break in the line of storms is right at the Norther growing region. This has kind of been their weather pattern for the whole season. Ten to fifteen days of dryness followed by a 1-2 inch timely rain. Brazil on the other hand just keeps looks wet, followed by more wet.
Corn is up 3, soybeans up 2 and wheat is up 12 to start the morning.
Have a Safe Day!