Futures are trading lower this morning after yesterday’s Turnaround Tuesday that saw wheat post its biggest 1 day gain in 7 months. Part of the rally was sparked by the strength in the cash basis for hi-pro wheat from mills. The turnaround helped futures hold support after the markets had become oversold. In the outside markets, the US Dollar is steady, crude oil is back above $57/ barrel and gold is trading higher as investor utilize it as a safe haven.
US Trade Ambassador Lighthizer will be speaking to Members of the House Ways and Means Committee. When he met with Senators yesterday he spoke positively on the progress being made between the US and China. We anticipate that we will hear more of the same from him today. Chinese media continue to report progress, but are not receiving the assurances they are seeking about the tariffs being lifted. With positive rhetoric coming out of Washington, the prospect of a trade deal between the World’s two largest economies coming in just weeks should be enough to keep the heavy sellers on the sidelines. Argentine corn is running about 25 cents cheaper than shipments originating out of the Gulf at this time which will keep pressure on exports.
Have a Safe Day!