The markets gapped higher overnight due to dry weather in Southern Brazil and Argentina and the buildup of Russian troops on the Ukraine border. Corn is currently up 8 while soybeans and wheat are up 25 and 5 respectively.
A report from Reuters this morning said that U.S. officials called on Monday for “concrete action” from China to make good on its commitment to purchase $200 billion in additional U.S. goods and services in 2020 and 2021 under the “Phase 1” trade deal signed by former President Donald Trump.
The official’s said Washington was losing patience with Beijing, which had “not shown real signs” in recent months that it would close the gap in the two-year purchase commitments that expired at the end of 2021.
The comments come a day before the U.S. government is due to release full-year trade data that analysts expect to show a significant shortfall in China’s pledge to increase purchases of U.S. farm and manufactured goods, energy and services. Through November, China has only met about 60% of the goal.
There is a WASDE report out on Wednesday with expectations for US carryout to be 1.512 billion bushels of corn, 629 million bushels of wheat and 310 million bushels of soybeans. The South American crop is expected to be reduced a couple mmts for corn and beans in Brazil and Argentina.
Have a Safe Day!