Morning Comments April 4, 2018
Wednesday, April 4, 2018, 8:04 AM
Submitted by: Landus Cooperative
Overnight trade was hard on grains. We're seeing corn down 10 cents and beans down more than 40 cents. Beans are trading at a two-month low and corn retraced all its rally after the acreage report last week.
China announced this morning that they are taking retaliatory action against Trump's proposed tariffs. Agriculture Secretary Sonny Perdue said Tuesday he feels confident that President Trump won't allow farmer "to bear the brunt" of a possible trade war with China. He also suggested the Trump administration might consider economic "migration efforts" to aid U.S. farmers should relations with China continue to harden. He did not specify what form those efforts might take and said the White House plans to wait and see to make decisions.
Equities are also sharply lower in reaction to the news with agriculture, plane, and automakers bearing the brunt. China's ag futures were sharply higher for soybeans, soymeal, and soy oil.
We'll see what today brings, things can change in a hurry. Be thinking about where your next price levels are to continue getting sales on the books.
Thank you for your business!