Markets are higher this morning after it was announced on Saturday that the US and China have agreed to dramatically increase their purchases of US agricultural and energy products. US Treasury Secretary said yesterday that the Trump administration is going to be putting a potential trade war on hold. Included in the framework of the agreement are commitments that include a 35-45% increase in agricultural demand. There is no breakdown of the demand increase, but it is expected to include soybeans, grains and US meat products. I would expect that these announcements should allow the markets to get back to trading fundamentals.
This does not mean that the markets are going to trade significantly higher, but could hold some key support levels in corn and soybeans.
Planting progress this afternoon is expected to show 80% of the corn crop and 55% of the bean crop planted as of Sunday night.
Producers should be taking advantage of these rainy days to talk to their buyers about putting in firm offers on any old crop corn sales they have left to make. You should also be getting sales on the books and putting in firm offers for new crop corn. With levels over $4, producers should have 25% of your 2018 production and 10% of your 2019 crop sold.
Have a Safe Day!