Corn is up 4 and soybeans are down 3 as we start the week.
The lead story this morning is about trade talks with China. U.S. Trade Representative Katherine Tai on Monday will seek new talks with China over its failure to keep promises made in a “Phase 1” trade deal struck with former president Donald Trump, but will not pursue “Phase 2” negotiations over Beijing’s state subsidies and other structural issues.
Senior Biden administration officials said Tai will pursue a virtual meeting with Chinese Vice Premier Liu He to discuss the trade deal “soon” while starting a “targeted” process to revive exclusions for certain Chinese imports from punitive U.S. tariffs. Tai will deliver long-awaited remarks outlining the Biden administration’s China trade strategy at the Center for Strategic and International Studies, a Washington think-tank, at 10 a.m. EDT. The coronavirus pandemic hit Chinese purchases of U.S. goods hard, and they have been running at only 62% of the target, according to estimates by Chad Bown, a senior fellow at the Peterson Institute for International Economics.
Trade issues with China and better than expected bean yields have the bean market lower again this morning. China is on holiday, so any increased buying may be limited. The Funds are long corn again and long very few beans. The wheat market is caught in the middle with a small net long.
Have a Safe Day!