Morning Comments April 2, 2018
Monday, April 2, 2018, 8:04 AM
Submitted by: Landus Cooperative
Corn +2 to 3
Beans +7 to 9
Follow through buying is continuing after last week's bullish 2018 acreage report. May corn is up 3 and May soybeans are up 9 at the morning break, both testing recent highs.
The uncertainty in trade relations between the U.S. and China are at the forefront of many traders mind as the situation escalates between the world's biggest economies. China's new tariffs are largely in response to U.S. duties on aluminum and steel imports and take effect today. China has increased tariffs by up to 25 percent on 128 U.S. products including frozen pork, wine, and certain fruit and nuts. The tariff on pork will impact corn and soybeans. They have also increased the tariff on ethanol imports from the U.S. by 15%, up to 45% which will make it difficult for U.S. ethanol to work into China.
In other trade news, Trump threatens to end DACA and NAFTA if Mexico doesn't increase border security.
New news is hard to come by. Trade is the biggest news wire right now, South American weather is at the wayside. Argentina saw some light rain this weekend, but it may be too late. There are early yield reports coming out of Argentina that are worse than expected.
Prices for old and new corn and beans are at or above profitable levels, so keep an eye out for opportunities to get some grain priced.
Thank you for your business, have a great day!