Oh how a weekend can change the direction of the markets! When we left on Friday all things pointed to higher markets this week, with forecasts for wet weather in the 10-15 day stretch and talks between the US and China making significant progress and potentially getting done this week. Fast forward 48 hours and the weather forecast has much less rain in the forecast and a simple “Tweet” has the deal with China looking like it may not happen. Yesterday President Trump tweeted that 10% tariffs paid by China on $200 billion in goods will rise to 25% on Friday because progress is continuing “Too Slowly”. Chinese delegation was scheduled to resume talks in Washington on Wednesday, but the latest news has some questioning if this will actually take place.
Corn is currently down 8 and soybeans are down 18. Look for traders to keep a microscope on the news out of Washington as the negotiations have now taken precedence over the weather.
As I stated in my comments on Friday, weather markets are very short lived and can change in a heartbeat. The same is true in politics as we all well know. Make sure you are actively selling any small rally in the markets.
Have a Safe Day!