Good Morning,

The markets are sharply lower again this morning with the expectations that President Trump will announce the implementation of new tariffs on Chinese imports today. There is also talk of a second list of tariffs that are expected early next week if the Chinese retaliate. With these announcement’s coming today, it is expected that the Chinese will retaliate with their own list of tariffs. It is expected that soybeans will be on Chinas list of goods.
Mexico is considering striking a $4 billion annual import of US corn and soybeans if President Trump escalates a trade spat with new tariffs on goods from Mexico.
After yesterdays close, the funds are reported to be long 1700 contracts of corn and short 12,000 contracts of soybeans. They have liquidated 176,000 contracts of corn and 102,000 contracts of soybeans in the last month. If we can get the trade tariffs out of the news this market should stabilize for the short term. Weather still remains favorable but I feel we have 3 more weeks of opportunity before this crop is made. If we fail to see any dry patterns in the Midwest over the next three weeks look for the markets to repeat last years levels.

Have a Safe Day!

Garry Gard