China Prepared to Retaliate Against President Trump’s Latest Tariffs
The Chinese commerce ministry was “shocked” at the newest round of tariffs covering $200 billion worth of goods. The ministry plans on making a formal complaint to the World Trade Organization. China may opt to respond with non-tariff measures, such as more thorough import inspections, delayed approval for business mergers, and even boycotting American goods. President Trump’s tariffs will target goods such as computer components, coal, and industrial chemicals.
IKAR Slashes Their Russian Grain Production Estimate
IKAR, a major ag consulting agency in Russia, has decreased their projection for all Russian grain to 112.8 MMT from 114.7 MMT. IKAR’s wheat estimate was dropped to 70.8 MMT from 71.5 MMT amid weather concerns in S Russia and a delayed planting in Siberia. They also have reduced their export estimate, cutting down to 41 MMT from 43.2 MMT.
Corn, Soy Exports Come in Below Expectations
Old crop corn exports were down 9% week on week and down 33% from the 4 week average. Top buyers for corn were South Korea, Mexico, and Japan. Soybean exports decreased 72% from last week and 62% from their 4 week average as China has ceased all purchases. Export reductions totalled 296,900 MT for the week. Major purchasers were Egypt, Indonesia, and Argentina. Old crop bean meal exports also made a marketing-year low due to a number of cancellations from South American countries. Wheat exports also disappointed, falling 69% from last week as well as the 4 week average. Nigeria and the Philippines were the 2 biggest buyers and a cancellation of 129,300 MT was reported for unknown destinations.
USDA WASDE Report Released at 11 A.M. CST
The trade expectation is that the USDA will increase their yield numbers for corn to 174.9 bpa (174 bpa June WASDE) and soybeans to 48.6 bpa (48.5 bpa Jun WASDE). If yield estimates are bumped up, that would be the first time a July WASDE increased the corn yield in 15 years and 24 years for beans. Corn production is expected to increase to 14.269 billion bushels (14.040 bbu Jun WASDE) and soybeans to 4.314 bbu (4.280 bbu Jun WASDE) due to an increase of planted acres for both crops (+1.1 mil acres for corn, +0.58 mil acres for soybeans).
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