Corn and Soybeans are off to a rough start this morning trading 9 and 17 lower respectively.
The Chinese trade delegation will begin talks in Washington this morning as all eyes will be watching for any signals from these talks over the next two days. The stress that this meeting is putting on ahead of a full on Asian tariff is nothing we have seen before. It’s a very minor part of the deal that appears to be hanging up the deal as most parts of the deal have already been worked out. One change that the Chinese were looking for had to do with a tax from 2018. The Chinese have asked to be refunded, and the Trump Admin said that was unacceptable.
The USDA crop report will be out at 11am tomorrow. Very few changes are expected to come inn on the balance sheets. Corn carryout will likely remain above 2 billion bushels. They may adjust exports down, while feed and ethanol will probably cancel each other out. Soybean carryout will be close to 900 million bushels and we may see another reduction in exports as China has bought very little in the last 4 weeks. The wheat carryout will be close to 1 billion bushels which is similar to last month.
Weather has not been a factor in the markets so far this spring and until the trade wars are settled, there is very little chance of weather becoming the market mover. Late planted corn and soybeans which result in lower yields is irrelevant if we don’t see an increase in demand!
Congratulations to those who took advantage of yesterday’s $3.40 cash offer! These sales are looking very good this morning.
Have a Safe Day!