Weekly Market Recap 4/6/2018
Friday, April 6, 2018, 2:04 PM
Submitted by: Landus Cooperative
We saw more volatility this week thanks to tariff talks between the U.S. and China. Markets went back and forth Monday and Tuesday as traders tried to get some footing, but we saw somewhat of a “panic” on Wednesday morning when China released a list of 106 products it would increase tariffs on by 25%. Previous talks had suggested soybeans would not be subject to the tariff spikes, but the latest list proves to contradict that. As a result, soybeans were down over 46 cents at one point during the trade. However, they managed to make some of that back later in the day, “only” losing 21 cents by the close. Corn also saw downward pressure with the news, being down 12 cents at one point and ending the trade session with a 7 cent loss.
It was clear as traders had re-evaluated reality versus possibility by Thursday, with corn closing up 8 cents and soybeans closing up 16 cents. There are still a lot of questions regarding these tariff negotiations, a primary one being when the increases would come into effect. We also have to consider, even with the higher expense, there can only be so much shift in China’s demand for soybeans.
At week’s end, May corn was up 3/4 of a cent and December corn was up a penny from the end of last week.
For soybeans, May beans lost 11 and November beans were down 14 1/2 for the week.