Grain News – Trump Won’t Settle For Less Than An ‘Excellent Deal’ With China
Yesterday saw heavy fund selling that pushed the markets sharply lower with beans leading the way! Corn and wheat slide lower following the beans as the funds baled and went to the short side of the market. The Argentine Peso is at a record low vs. the dollar. The fall in the South American currencies has the effect of raising the price of soybeans to their farmers since world soybeans are priced in dollars.
Weekly ethanol production fell by 29,000 bpd to 975,000 bpd. Ethanol stocks were unchanged at 24.4 million barrels, but still an all-time record. Margins fell 4 cents/gallon to a positive 3 cents/gallon. Weekly production this marketing year is down 1.7% from a year ago levels. Many anticipate a cut in corn for ethanol usage on future S/D balance sheets.
High-level U.S. officials, including U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, are headed to China today to resume trade negotiations between the two countries. Earlier this week, Lighthizer told reporters: “If there’s a great deal to be gotten, we’ll get it. If not, we’ll find another plan.” And President Donald Trump told Republican lawmakers on Tuesday that the U.S. will settle for nothing short of an “excellent deal.”
Corn prices dropped yesterday around 1% on technical selling and positioning ahead of Friday’s USDA reports. May and July futures each lost 3.5 cents to close at $3.73 and $3.83.
Soybean prices yesterday for May and July futures both tumbled 13.25 cents lower to land at $8.87 and $9.01.
Wheat prices firmed slightly yesterday on general U.S. export optimism after Russian supplies have tightened somewhat. May Chicago SRW futures ticked 0.25 cents higher to $4.69.
This year has seen a record amount of marketing plans put together for our customers by the grain marketing staff at Landmark. We are the best at what we do, so give one of us a call to help put a plan together for your specific operation and financial needs.
Think spring and be safe out there!