Slightly higher markets overnight as we saw some short covering in corn and soybeans from yesterday spill over into the night session. Slightly lower crop ratings may move the market a little higher when we open this morning, but the ratings are still historically high so any long term moves are doubtful.
Corn came in at 72% G/E for the US compared to 64% last year and a 5 year average of 70%. Wisconsin came in at 82% G/E compared to 75% for the five year average. Soybeans came in at 69% G/E for the US compared to 61% last year and a five year average of 67%.
The US has filed claims with the WTO against China, the EU, Canada, Mexico and Turkey after those countries filed complaints about the Presidents steel and aluminum tariffs. There is some talk that US and China may be talking about trade issues. New $200 billion dollar tariff is due in early September. There may be dialog to resolve issues before then compared to talks last week that China would not meet until after the midterm elections. Some also feel that US soybean export prices are 23% below Brazil and have almost priced in the current 25% tariffs. Unfortunately this is not something that is going to move prices higher for US producers.
Producers looking to move old crop and clean out their bins before the 2018 crop starts to come off should give us a call to discuss some special options that we have for you.
Have a Safe Day!