Headlines
CME group increased May soybean margins from $1,400 to $1,550. CME group increased May wheat margins from $1,150 to $1,250. Corn holds steady in overnight around support levels. Exporters sell 138,000 metric tons of Corn for delivery to South Korea during the 2017/2018 marketing year.
Corn Pullback
Rains in Argentina triggered additional selling pressure on Monday. Prices found support on Tuesday at 50 percent retracement level from mid-January lows to mid-March highs. The 50 day moving average is also bolstering support for Dec ‘18 corn at $3.955. Strong export demand should help support corn prices going forward.
White House Could Announce Chinese Tariffs on Thursday
The White House is planning on releasing its measures which are targeted at China on Thursday. The proposed plan would not go into effect immediately and there would most likely be a period of time for U.S. industry to comment on the plan.
RFS Update
Sonny Perdue and Scott Pruitt presented the White House with a list of options but it was unclear whether Trump would implement changes on RFS at an executive level.
Sonny Perdue said “The White House is trying to determine whether they need to make a call on a decision, or allow Congress to do it,”. RIN prices have traded higher after indications that the White House is backing off its plans to change RFS at an executive level.
KC Wheat Weather
Latest weather models show increased chances for precipitation in West Texas and the southern HRW wheat region for the second half of next week.
Argentina
Precipitation still in the forecast for this weekend and is expected to favor the central and northern production regions. Dry conditions through the middle of next week are expected to follow weekend rains.
Brazil
Showers in west-central Brazil. Conditions remain very positive for corn and soybean development.
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