The next 48 hours are going to be very critical to the long term trade as the world waits to see if the US follows thru on its Chinese tariffs that are supposed to be implemented tomorrow. Traders are fearful that if these tariffs are implemented, we will see retaliation tariffs from the Chinese that will greatly impact the farming sector. President Trump is meeting with advisors today considering the tariff situation.
Weekly exports increased in both corn and beans for the week ending 6/7/18. Corn came in at 36.9 million bushels while soybeans were at 19.1 million bushels. This is the highest bean export since early April. Both corn and soybeans were slightly above the 10 week average.
Yesterday afternoon private analyst Informa released their estimate of the 2018 corn acreage. They had corn at 88.7 million acres vs. the USDA’s March number of 88.0. Soybeans were at 89.9 vs. the USDA March number of 89.0. The USDA will release its June acreage and yield estimates on 6/29/18. Historically the June acreage for corn compared to the March intentions has increased 13 of the last 18 years. With the expectation for more acres and an above trend line yield the markets will remain under pressure unless weather becomes an issue.
Political pressure has the corn market trading 9 lower this morning and soybeans down 7. This is just move supporting evidence why producers need to actively sell rallies like we saw on Tuesday! Look at charts under Market Insight on our web page for historical trends in June.
Have a Safe Day!