Markets are slightly higher this morning with corn trading 2 higher and soybeans trading 6 higher.
Part of the excitement yesterday centered around trade talks between the US and China overnight. Both sides are reporting that talks were productive. The conversation reportedly focused on implementation of the Phase 1 deal. In a statement from the USTR he said “both sides agreed that good progress is being made on creating the governmental infrastructure necessary to make the agreement a success.” Rumors were circling yesterday that the Chinese were looking to secure another couple hundred thousand tons of corn and three to four hundred thousand of beans.
What may hold markets back a little here today is the weather models backing off of their forecasts for record cold that would produce a frost threat to much of the Corn Belt. The models remain cold through the weekend and into Monday, but concern for any real crop damage has waned with the forecast a few degrees warmer than yesterday. A broad ridge/trough pattern will remain in place for several days before we make a shift to a more zonal flow by the middle of next week. This should produce more season temps with highs in the 60’s. 70’s, and even a few 80’s. Overall, the forecast looks favorable for planting and we expect seeding to accelerate with the extended models looking like they will have a nice mixture of warmth, sunshine and rain.
Argentina corn harvest was reported at 38.2% harvested yesterday which is 10% ahead of the 3 year average. Soybean harvest was reported at 78.2% complete compared to 68% for the 3 year average.
Have a Safe Weekend!