Markets are steady in corn, up 1 in beans up 3 in wheat. Hopes of additional soybean sales to China are on traders minds. However, traders will have to balance any enthusiasm with the favorable weather outlook for the central US.
This morning private exporters reported to the USDA export sales of 389 TMT of soybeans for delivery to China during the 2020/2021 marketing year and sales of 132 TMT of corn for delivery to China during the 2020/2021 marketing year. We hope this can continue.
President Trump has signed legislation that would hold Beijing accountable for its oppressive actions in Hong Kong. The President went on to suggest that he has no interest in negotiating a Phase 2 agreement. This raised a few eyebrows and calls into question his commitment to the Phase 1 deal. Tensions are high between the two nations and traders around the world are concerned that either President Trump or Chinese President Xi could pull their support from the Phase 1 deal at any moment as political retaliation.
Weather forecasts continue to look favorable for most of the Midwest as crop progress rolls along.
Fall corn is back below $3 and may not move higher without some major news. Less than a week ago we were in the $3.20+ range and some producers got sales on. This may be the best numbers we see thru the end of the year. My advice would be for everyone to get sales on the books and firm offers in place.
Have a Safe Day!