Grain markets are trying to stabilize after yesterday’s selloff in corn and soybeans. Corn closed 3 lower and soybeans were down 19 yesterday. This morning corn is unchanged and soybeans are up 2.
Yesterday’s weakness was a result of President Trump indicating that he would move ahead with increased tariffs on 200 billion dollars of Chinese goods from 10% up to 25% and put tariffs on the rest of the Chinese goods that are not subject to tariffs yet. This is the Presidents hard line of negotiating ahead of the G20 summit. Trump also said that a deal could happen but it’s up to the Chinese.
Weather has been terrible to finish the last 6% of harvest with snow across the Midwest over the last few days. Yesterday afternoons progress report showed the US 94% complete on corn and 94% complete on soybeans. Wisconsin was 88% complete on corn and 94% complete on soybeans.
Fridays G20 summit could be the next mover in the markets depending the outcome of US and Chinese negotiations. (higher or lower)
Funds have added to their short positions in corn and beans over the last week which is a negative indicator for the markets in the short term.
Have a Safe Day!