5/22/2019 8:10am
Yesterday it was reported by a news service that the Trump administration is considering payments of $2 per bushel for soybeans, 63 cents per bushel for wheat and 4 cents per bushel for corn as part of a package of up to $20 billion to offset farmers' losses from the trade war with China a news service reported. They went on to say in their news story that more details will come Thursday.
The market reacted accordingly with soybeans hit hard with talk that more acres of soybeans would be planted in the areas due to the wet conditions. Markets lower overnight on profit taking and funds willing to protect their short positions in the corn trade. Short term the weather continues a wet bias and cool temperatures.
Mexico has lifted the tariffs placed on U.S. products last year after the U.S. agreed to lift it's tariffs against Mexican steel and aluminum. President Trump is urging Congressional leaders to pass the U.S./Mexico/Canada trade deal before taking up any other major legislation. It would seem that the current parties in Washington would rather drag this out as a push for power.
Beijing is ready to resume trade talks with Washington, China's ambassador to the United States Cui Tiankai said, as a top U.S. business lobby in China said nearly half its members are seeing non-tariff barrier retaliation in China due to the trade war a news service is reporting.
Dow futures off 62 pts. Crude half a buck lower. US $ slipping negative.
Drier 5-day outlook enough to pressure corn trade overnight? Not that it creates a perfect planting window, but short-range maps are drier. NWS 6 - 10 forecast remains wet.
Funds have bought an estimated 164K corn contracts the previous 7 sessions and still have an estimated net short of 164K.
Where do we go from here? Thinking market may level off here a little bit continuing to watch weather forecast daily, and Fund money direction. With a .40 plus cent rally off the lows, its a good time to reward the market and make some sales. Great opportunities to be locking $4 plus dollar corn out in Cn20 with some HTA Contract. Cash corn levels over $3.80, and new crop corn at $3.70 are great levels to make sales also.
