Great weather and trade wars continue to take their toll on the markets heading into this week. The forecast fo the Corn Belt features continued heat early this week before the front stalls over the Midwest bringing rain from Nebraska to the Ohio River Valley from midweek onwards. The heat that we saw this weekend will be pushed south with cooler Canadian air ushering in more seasonal temps across the Midwest.
Late on Friday, China retaliated by applying a 25% tariff on a slew of US AG products that included meats, dairy, soybeans and grains. The response was expected after China provided the US frequent warnings of its intentions following our own announcement of tariffs earlier in the day. Subsequently, China’s offer to buy another $70 billion of US Ag and energy goods is now off the table and US – China trade negotiations will have to restart from scratch.
Anyone looking for a rebound in the markets to make old and new crop sales before harvest may have run out of time! The weather has been just about ideal and crop conditions will remain high in the G/E category. The only bump that we can hope for right now is the US working out its trade issues with China to increase demand.
Have a Safe Day!