The Trump administration raised the stakes in its trade war with China yesterday saying it would slap 10% tariffs on an extra $200 billion worth of Chinese imports by August 30th. Last week the US imposed 25% tariffs on $34 billion of Chinese goods to which the Chinese responded with matching tariffs on the same amount of US goods. The new tariffs announced yesterday targets more consumer goods than those covered under the tariffs imposed last week. President Trump has continued to state that he will take care of the US farmer, but this may take a while and several operations may suffer at the expense of the long term goal.
The USDA will release their monthly supply and demand numbers tomorrow at 11am. Expectations are for corn and soybean stocks in the 17-18 and 18-19 year to increase. Below are the trade estimates.
|June Report||July 12th Estimate|
|US Stocks 2017-18||2.102||2.107|
|US Stocks 2018-19||1.577||1.712|
|US Stocks 2017-18||.505||.507|
|US Stocks 2018-19||.385||.471|
Have a Safe Day!