USDA Secretary Says China Will Buy U.S. Soybeans, Is Uncertain If Tariffs Will Be Removed
In a press conference yesterday, the USDA Chief Sonny Perdue made comments that China will likely buy U.S. soybeans in the early part of 2019 due to dwindling South American supplies but it is unclear if China will ultimately remove their tariffs on soybeans. Many trading firms such as ADM and Bunge disagree with Secretary Perdue, saying that China may not have to buy U.S. origin beans because of the quickly-approaching South American harvest. The Brazilian soy crop has seen record fast planting and ready for harvest up to two weeks ahead of average. The announcements from China and the US following Saturday’s G20 Summit called for China to purchase US ag products “immediately” and for the US to hold off on any additional tariffs.
Brazil Soybean Planting Continues at Record Pace, is in Great Condition
As of the end of last week, Brazil was 89% planted for soybeans across the whole country, up from 84% this time last year and higher than the 5 year average of 78%. Dr Michael Cordonnier of Soybean & Corn Advisor estimates that the Brazilian crop is 95% good-to-excellent as subsoil moisture is adequate in the major growing regions of central, eastern and northeastern Brazil. There have been some cases of soybean rust being reported from the central growing region. Soybean rust is problematic in Brazil because of volunteer beans popping up due to bean-on-bean rotation and rust spore drift from neighboring Paraguay. Brazilian farmers will apply fungicide as soon as rust is detected in a field.
Winter Weather, Hazardous Travel Conditions Forecast for E Nebraska And W Iowa
The National Weather Service has issued a winter weather advisory for counties in E Nebraska and W Iowa along the Missouri River. Freezing rain is expected to turn into snow flurries with little accumulation. Roads may become iced over as the rain freezes. To the east, central Iowa to central Illinois are also expecting freezing rain and the accumulation of ice on roadways. The freezing rains over Iowa aren’t expected to last through the second half of the week but may complicate transportation on unsalted roads.
The risk of trading futures, hedging, and speculating can be substantial. FBN BR LLC (NFA ID: 0508695)
