Good Morning,
Slightly stronger markets expected this morning with corn and beans both up 2. Traders are hopeful that some news will leak out of Washington in regards to the Chinese/US trade talks.
It seems rather unlikely that with this one meeting the trade war will be over, but rather the most probable outcome for these talks is that nothing absolute actually comes out of them other than an extension of the current truce into spring. As far as Chinese purchases of US Ag products, it is wait and see at this point and leaves the commercials at a distinct advantage in the markets.
Hopefully the return of the export sales can help level the playing field. The USDA announced on Tuesday that export sales since mid-December will be released in parts over the next several weeks instead of all at one time. This is a different policy than what was done following 2013’s shut down. This Thursday’s report will include export demand through the week ending December 20th. Next Thursday’s will include sales through the week ending Dec 27th.
The market won’t be fully caught up on sales until Feb 20th, assuming the US government can strike a funding agreement. Remember that right when the government reports stopped that US corn and wheat were becoming the world’s cheapest feed.
Have a Safe Day!
Garry Gard
920-348-6844
ggard@didionmilling.com
