Grain News – Trade Truce
Last weekend’s meeting at the G20 summit in Argentina has positive impact on the market. The results of the dinner between President Trump and Xi was a “trade truce” that will result in the US not raising tariffs on Jan 1. There was also the signing of the new U.S.-Mexico-Canada Agreement (USMCA).
After the dinner President Trump tweeted: “Farmers will be a very BIG and FAST beneficiary of our deal with China. They intend to start purchasing agricultural product immediately. We make the finest and cleanest product in the World, and this is what China wants. Farmers, I LOVE YOU!”
Also on Monday, Treasury Secretary Steve Mnuchin expressed optimism about the future of an overall trade agreement with China. He said China has a current offer on the table valued at $1.2 trillion in additional commitments. It consists of more than just agricultural goods, but agriculture will be a part of the Deal.
Corn is trading higher this morning on spillover strength from soybeans. Corn exports last week reached 40.8 million bushels, falling in the middle of trade estimates. Mexico was the No. 1 destination.
Soybeans are trading higher this morning. Buyers appear to have the prove it to me attitude. Exports are still lagging with Argentina the biggest destination. There is still a lot to digest over the China truce. Negotiations with China have already started.
Now that harvest is slowly coming to a close please keep in contact with your grain marketing specialist to work on marketing bushels in the bins as well as 2019 crop. We have many marketing tools in our toolbox to help you market your crop. Please contact us to discuss your needs.