Morning Comments May 23, 2018
Wednesday, May 23, 2018, 8:05 AM
Submitted by: Landus Cooperative
Corn even to 1c higher
Soybeans are up 2 cents
More rain during the overnight, 2-4” moved across north-central Iowa, which will make any fieldwork difficult today. The weather outlook has light to moderate rains for most of Iowa, Minnesota, and western Wisconsin for the second half of the week and weekend and will move into the rest of the Midwest Saturday and Sunday.
Brazilian farmers have been protesting recently on high fuel prices, this is becoming more concerning and is hampering the transport of commodities. Their government and congressional leaders have reached a deal to use tax policy to reduce fuel prices. They agreed to cut the CIDE tax from 40% to 10% and use additional payroll tax revenues to help bring down prices at the pump that have surged nearly 50% in less than a year.
Equities are sharply lower following big losses yesterday. Financial markets are reacting to news that Trump is “not satisfied with the U.S./China trade talks”. There are rumors that Sinograin is price shopping U.S. beans and that we could potentially see Chinese buyers make large U.S. bean purchases once a deal has been struck.
OPEC may decide to raise oil output as soon as June due to worries over Iranian and Venezuelan supply and after Washington raised concerns the oil rally was going too far. Gulf OPEC countries are leading the initial talks on when the exporting group can boost oil production to cool the oil market after crude rose about $80 a barrel last week.
Have a great day!