Lower to start the week following Friday’s bearish USDA report and trade negotiations that have turned negative. Corn is down 8 and soybeans are down 16 to open the week.
U.S. and global inventories were large in Fridays report for corn and soybeans. 2018/2019 US ending stocks were estimated at 2.095 billion bushel for corn and 995 million bushels for soybeans. 2019/2020 ending stocks were estimated at 2.485 billion bushels for corn and 970 million for soybeans. Both of these numbers are weighing heavily on the market and will for some time in my opinion. I do expect the corn carryout for the 2019/20 year to drop due to lower yield, but it will have to drop significantly from the 176 bpa estimate in order to move the market.
Talks between the US and China went nowhere last week and there appears to be no end in sight as the two parties battle over three issues. President Trump ordered the US trade representatives on Friday to start the process of raising tariffs on all remaining imports from China. The fear of traders this morning is what retaliation will the Chinese take against the US. US Agriculture Secretary Sonny Perdue said on Friday that President Trump has asked him to create a plan to help American farmers cope with the heavy impact of the US-China trade war on agriculture.
The US Midwest weather forecast has some spotty showers across the Midwest this week, but things should be mainly dry across the region into the weekend.
Have a Safe Day!