Reports that China sent the US their own trade adjustments yesterday afternoon to get renegotiations moving forward once again have the markets trading higher this morning. More of these optimistic talks could spark as we get closer to the G-20 Summit at the end of this month. While this is great news and supportive to the market those with bullish thoughts about the markets need to keep a couple things in mind:
1. Nothing has been finalized yet.
2. China has found other suppliers for their soybeans and alternative sources for protein in the last 6 months.
3. We are currently putting away one of the largest corn and bean crops in US history.
Corn is trading 3 higher and soybeans are 8 higher to open the day.
Producers looking for space to put away this year’s crop or looking to core out bins before the first of the year should be targeting sales in the $3.40-3.50 range.
Have a Safe Day!