Soybeans Trade Higher Overnight On Positive Signs Between China and U.S.
The Chinese government has written a letter to the White House as an opening bid to advance progress in trade talks between the two countries. The letter does not address what the Trump Administration would consider key issues but is being taken as a sign that talks are progressing.
Overnight, Jan 19 soybeans rallied 9.25 cents to $8.9275 and Nov 19 traded 7.75 cents higher to $9.435. Corn and wheat were also higher during the overnight session.
At the end of the month, President Trump and Chinese President Xi Jinping are both scheduled to head to Argentina for the G20 Summit, where both leaders are set to have 1-on-1 meetings where trade will be the top priority.
Strategie Grains Improves Estimate for This Year’s European Corn Crop
Private consultant Strategie Grains has increased their estimate for the European corn crop in 2018. They see total production at 60 MMT, compared to their estimate of 59.4 MMT back in Oct and is 1% higher than 2017.
Much of Europe suffered from serious drought stress, particularly France and Germany, but these losses were compensated by better yields in Romania and Hungary.
Strategie Grains also projects this year’s soft wheat crop at 127 MMT, unchanged from the previous month but marks an 11% decrease from the previous year, largely due to drought.
Eastern Regions Of The Midwest Continue To Face Harsh Winter Weather
Central and S Illinois and SE Missouri are under winter storm and ice warnings, issued for this morning by the National Weather Service. The warnings will remain in effect until 6 pm this evening.
Further to the east, large parts of S Indiana are under an ice storm warning from the NWS. Up to 4 inches of snow and “significant icing” is in the forecast.
Winter storm warnings and advisories are in place all the way from the bootheel of Missouri and parts of the mid-South, up through the Ohio River Valley and Mid-Atlantic.
The risk of trading futures, hedging, and speculating can be substantial. FBN BR LLC (NFA ID: 0508695)
