President Trump Threatens to Raise Tariff Rate on $200 Billion of Chinese Goods
Late yesterday, President Trump claimed that he may increase the tariff rate from 10% to 25% on $200 billion worth of Chinese products. These tariffs were implemented by the U.S. earlier this summer.
President Trump also mentioned that he may put into place $267 billion more in tariffs if China does not meet his demands on trade, effectively placing tariffs on all imports from China. President Trump and Chinese President Xi Jinping will meet with one another later this week in Argentina for the G20 Summit.
USDA Crop Progress Report Shows Corn, Soy Harvest Nearly Finished
According to this week’s Crop Progress report from the USDA, the US corn crop is 94% harvested, up from 90% the previous week and behind the average at 98%. Illinois is now 100% complete, but the Dakotas, Nebraska, and Minnesota remain behind average, following recent winter weather and a wet fall. For soybeans, the USDA pegs harvest as 94% complete nationally, compared to the 5 year average of 98%. Illinois and Ohio are both finished with harvest but states in the west continue to lag behind. Winter wheat is now 95% planted, falling behind the average pace of 99% for this time of the year. A majority of the states included in the report are finished but Kansas and Oklahoma have some ground to make up.
Commitment of Traders Report Shows Speculators Turn Bearish Corn, Add to Soybean Shorts
For the week ending on Nov 20, money managers sold 25,826 contracts to give themselves a net short position of 7,845. This ends a 5 week run of speculators being bullish by having a net long position in corn. For soybeans, managed money added 5,221 contracts to bring their net short position to 60,246 contracts. Speculators also increased their net short position for Chicago SRW wheat by 11,164 to 37,848 contracts. For KC HRW wheat, speculators added to their net short position by 3,943 to total 5,214 contracts. This marks the second week in a row that money managers are bearish for KC wheat.
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