Morning Comments August 16, 2018
Thursday, August 16, 2018, 8:08 AM
Submitted by: Landus Cooperative
Corn is up 3.5 cents
Soybeans are up 17 cents.
The markets are rebounding on news announced last night that the Chinese Vice Chairman will travel to the U.S. for trade talks in late August. These mark the first trade talks between the two countries since June. These talks have been described as “low level” with the goal being to determine if either side has moved enough to the middle to warrant higher level talks. To date, both countries have tariffs on $34 billion of imports with an additional $16 billion set to begin later this month. The U.S. has threatened additional tariffs on $200 billion in goods while China have threatened tariffs on $60 billion of additional goods. The U.S. imports roughly $506 billion in Chinese goods while China imports $130 billion in U.S. goods.
NAFTA trade negotiations continue to progress with Mexico.
Equities are also rallying on the trade talk news with the Dow up 200 points while the dollar is weaker versus most world currencies.
Weather forecasts are trending drier but still showing rain events bringing moisture chances to the Midwest through the first half of next week before things turn quiet the second half of next week. Temperatures are expected to be near average. The longer range models are showing cooler than normal temperatures with precipitation to range drier in the West and Northern Plains and wetter in the Southeast.