The markets are trading mixed to start the week as traders prepare for a new round of tariffs from President Trump on China. This also weighing on the outside markets with China saying it’s ready to respond.
November soybeans are lower as well with futures back near last week’s lows as traders worry that this latest round of trade war rhetoric from the White House could lead to China walking away from plans for sitting back down at the negotiating table.
In an interesting turn of events, the President Trump did offer to cut the effective tariff rate to 10% from 25%. Regardless, the market will be concerned with the timing for the activation of the new set of tariffs. Should they be delayed for a month, this would leave open the possibility that some sort of deal could be worked out by trade negotiators for both sides in a fresh round of talks set for the end of the month.
Have a Safe Day!