Markets are lower again this morning with favorable planting and growing weather in the forecast. The U.S. Midwest weather forecast changed to significantly less rains over the next 5 days and the 6 to 10 day period is also a bit drier. The U.S. Delta and the Southeast has a period of wet weather through early next week.
President Donald Trump said on Wednesday that progress was being made in talks with Mexico to stem the flow of migrants to the United States and would continue on Thursday, but unless an agreement can be reached a 5% tariff on Mexican goods would begin on Monday.
With the anticipation of lower production, Smithfield foods purchase of 500,000 to 1 MMT of South American corn for 19/20 makes sense. There is no way the ECB is going to produce enough corn to match 18/19 domestic consumption for ethanol, feeding, and exports. Other animal feeders on the East Coast and in the SE may looking at doing the same thing, which will continue to reduce the demand for US corn!
Have a Safe Day!