Markets re slightly higher this am with corn up 2 and soybeans up 2. Prices are receiving a boost from the energy complex this morning as ethanol production follows energy demand higher amid the COVID-19 pandemic’s recovery. Recent export sales to China also helped to underpin strength to soybeans. A soggy weekend weather forecast that would limit planting progress also contributed to this morning’s gains.
The Trump Administration moved to block shipments of semiconductors from chipmakers to China’s Hauwei this morning. The company depends on them for future growth meaning the White House’s move could cause problems for the Phase 1 trade pact. We await Beijing’s response.
With great planting progress and favorable weather so far this growing season the markets are not only going to struggle to move higher, but struggle to stay where they currently are. Carryout expectations of 3 billion plus that we saw in this weeks report are not going to lead to anything positive in the markets.
Make cash sales and new crop sales on any bounce in the market(1-5-10 cents) because they will be very limited.
Have a Safe Weekend!