Corn and soybeans have both opened the day higher and are trading 3 and 12 higher respectively. Today’s trade is similar to yesterdays that opened higher and failed to sustain its strength closing unchanged. Soybeans did manage to 13 higher yesterday after trading 20 higher earlier in the session. Traders continue to monitor headlines, quotes and tweets about the potential negotiations between China and the US ahead of this weekend’s G20 meetings.
Look for the markets to remain neutral as neither the bulls or bears are willing to stick their necks out too far with so much on the line and no strong indication of what will come out of these meetings. We do not need to see a resolution this weekend, but will need to see progress made and both sides willing to work on a solution. The refusal of either side to work towards a deal this weekend would not bode well for the grain markets. The US is not alone in these problems either, the EU and Japan have major stakes in the meetings this weekend. If any new tariffs are put in place it would put a coalition between the US, EU and Japan in jeopardy.
I remain optimistic that something will get done this weekend, but the risk of the 25% tariffs going into place would be devastating to the markets.
Have a Safe Day!