G7 Summit Drama Complicates Trade Talks
Back and forth between Trump and Trudeau muddies the waters for tariff talk
G7 Summit in Quebec Results in Trade Turbulence
Trade tension, in the agricultural sector particularly, between the US and Canada served as the highlight of meeting of the world’s 7 largest economies.
Trump tweeted that American farmers have a “big and unfair price to pay” when it comes to exporting goods abroad.
Germany’s Angela Merkel plans on implementing tariffs in response to last week’s tariffs on Canadian and European steel and aluminum put in place by President Trump.
Russian Wheat Production Estimates Reduced By Prominent Consultants
IKAR lowered their total wheat estimate by 2 million metric tonnes to 71.5 MMT, citing cold, damp weather in Siberia, a major spring wheat producing area.
SovEcon cut their HRW by 800,000 MT to 54 MMT on news of inadequate moisture in the Black Sea growing region
Ending stocks of all Russian wheat remain high, pegged at 11.72 MMT according to the May USDA WASDE report.
Harvesters have been out shelling corn in the Brazilian state of Mato Grosso, one of the top producing states in the country.
Yields have been reported to be around 99-102 bpa, as the earliest planted corn received the best moisture through the growing season. Yields are expected to fall as harvest progresses.
Commitment of Traders Report Shows Increased Selling For Corn and Beans, Silver Lining For HRW
In corn, money managers reduced their net long position by nearly 100,000 lots, bringing their net longs down to 78,696 contracts, as US crop conditions have been quite strong.
Soybeans fared no better as hedge funds took their net long position down by around 38,000 contracts to 65,177.
KC HRW saw managed money long positions increased by nearly 10,000 to 57,167, coming off of the news that Russian wheat production estimates were scaled back.
Chicago SRW had money managers increase their short positions by around 2700 lots to be net long with 23,058 contracts.