Grain News – Trump Encourages EU to “play ball” in Trade Talks
Friday’s Twitter announcement from Washington of China’s good faith agreement to buy 10 mln tonnes of U.S. soybeans allowed for some optimism but by the end of the day Monday the red ink on the wheat screen was too hard to ignore as funds sold commodities before First Notice day on Thursday. Funds have increased their corn and wheat short position while also moving to the short side of beans. If the 10 mmt of soybeans is old crop that would be sizeable as China Year to date has purchased only 7.41 mmt vs last year at 26.2 mmt.
Trade negotiations continue in Washington even though most of the Chinese delegation has returned to Beijing and a final deal may not occur until Trump/Xi meet and there is no date announced. President Trump today warned the European Union he would “tariff the hell out of you” if Brussels does not “play ball” in trade talks and told a group of governors that the negotiations with the EU might be even tougher than those with China.
Monthly US winter wheat ratings were lower than expected with all states but KS seeing a drop from last month. Snow is in the forecast for the northern corn belt and accumulations are ranging from a half to four inches. Winter weather continues to hamper logistics allowing for nearby bids in some cash markets to reflect quick ship premiums and making freight expensive.