Markets are mixed this morning with corn up 1 and soybeans down 7. Weather and US-China tensions lead the news today.
China advanced its law restricting the freedoms of Hong Kong today, taking the action despite threats for sanctions from the United States. Negotiations with China are most effective when done within the context of relationship. It’s a part of their culture. President Trump was very effective at developing and maintaining a relationship of respect with President Xi Jinping through the tensions of the trade negotiations, even in the rocky times of that process. That respect allowed the negotiations to continue. But that relationship is being tested currently and stretched thin to the point of breaking as President Trump has lost patience with the Chinese leadership’s poor handling of the coronavirus that allowed it to rapidly spread to the rest of the world, and now its aggressive stance on Hong Kong, on top of its spread of military might in the South China Sea while saying it was not doing so. China moved forward with tough restrictions on Hong Kong and the world now waits for President Trump’s response, which is expected to elicit another response from Xi. (seems like a soap opera)
Weather remains favorable for most of the Midwest over the next couple weeks with warm temps and adequate rainfall. Locally things could not be much more ideal with humid temps and rainfall the last few days the crop is popping out of the ground at a fast pace. I have not heard of any emergence issues from any producers in our draw area.
Have a Safe Day!