Morning Comments May 21, 2018
Monday, May 21, 2018, 8:05 AM
Submitted by: Landus Cooperative
Corn +2 to 3
Beans +15 to 19
Markets trading in the green all night, July corn ended 3 1/2 higher and July beans were up 18 1/2. The main contributors are news out of China and weather.
We saw some great planting progress in the northern half of the state and Minnesota this weekend. We finally caught some luck and missed the rains for most of the area that were forecasted over the weekend, it held off and rained a bit Sunday night. Overall planting progress is expected to be near the 5-year average. This afternoon’s planting progress report is expected to show U.S. corn crop near 72-75% planted, soybeans around 52-55% planted, and spring wheat near 82% planted.
Finally some news out of China, there was a joint statement from the U.S. and China regarding trade consultations from the Office of the Press Secretary out on May 19, 2018 (Saturday). There were several constructive consultations regarding trade in Washington, D.C., last week on Thursday and Friday. They came to an agreement on taking effective measures to substantially reduce the U.S. trade deficit in goods with China. This is brought on by growing consumption needs of the Chinese people and the need for high-quality economic development; China will significantly increase purchases of U.S. goods and services. This is very good for the U.S. and will significantly support growth and employment in the U.S. Both sides have agreed on meaningful increases in U.S. agriculture and energy exports. The U.S. will send a team to China to work out details. There is nothing set in stone, this basically sums up to the U.S. and China putting the trade war on hold, hopefully they figure out something more concrete. Some other good news last week was the announcement that China was dropping their anti-dumping claim against the U.S. regarding sorghum. This is good news for the rest of the grain and oilseed market, but a lot of damage has already been done in the sorghum market.
Other trade news – Trump announced he would wait for the next Congress before deciding on NAFTA issues.
Equities, most energies, and the U.S. dollar are all higher this morning as well.
Thank you for your business, have a great day!