Nice rains falling across the state overnight and this morning that will maintain or increase the size of this years crop. Most of our producers have said that their corn has tasseled or will be in the next week. This rain along with favorable temperatures will ease any concerns that may have existed. Current weather and forecasts for the majority of the Midwest growing areas appears to be the same with Northern Missouri and a small area in Southern Iowa being the only major areas with moisture concern.(see map below)
President Trump continues to “poke the bear” as he said he is willing to impose $505 billion worth of tariffs on China if they continue to retaliate to his requests. This tariff would represent the total value of American imports from China. US trade officials have said that their main trade focus is getting NAFTA 2.0 completed by the end of the year.
While trade talks and tariffs with China are the main headline, there are several other countries with tariffs and trade issues with the US. Yesterday’s export sales report did show a cancellation of EU corn sales which is believed to be related to the 25% tariff on US imports. No one knows if or when these issues will get resolved. Regardless of the timeline, we should not expect an immediate rebound in the markets when things get worked out. Producers need to find a way to cover their operating costs with the current price structure.
Have a Safe Weekend!