Markets are quiet this morning with corn and soybeans both hovering around unchanged following the three-day weekend. The recent rally has given producers a good opportunity to market grain ahead of the upcoming harvest.
Friday we get a look at the USDA’s September Crop report. This will be one of the most important reports in years following the derecho event in Iowa coupled with the flash drought yield losses.
President Trump vowed to end America’s reliance on China. The President threatened to punish any American company that creates jobs overseas and forbid those doing business with China from winning any federal contracts. The worsening political rhetoric has the pros wondering if Beijing will fulfill it pledges on purchases for the Phase 1 trade agreement. China has been a sizable buyer of US beans, corn and even wheat, but continue to lag on other Ag products, manufactured goods and energy. Money managers will likely pay close attention to this situation to see what China’s reaction to President Trump’s new hardline stance is.
The weather models are in agreement as they offer consistently cool/wet outlook for this week. Extended forecasts show some warming and drying out next week. In the meantime low temperatures will dip into the mid to lower 30’s across North Dakota and far northern Minnesota tonight. Otherwise there is no frost event on the radar that would lead to a premature end to the 2020 growing season.
Have a Safe Day!