Soybeans Hit Lowest Level In 10 Years After Trump Threatens More Tariffs
November soybeans traded as low as 864.5, the lowest in nearly a decade, following Monday’s news that President Trump would consider an additional 10% tariff on $200 billion worth of goods. Chinese officials immediately responded saying they would fight back against Trump’s “blackmailing” with tariffs of their own. Monday’s USDA Crop Conditions report offered no real support, downgrading beans by 1% to 73% G/E but well above the 5 year average of 68% G/E.
Ethanol Closed At Contract Lows As Chinese Buyers Dry Up
Earlier this year, China announced a plan to use E10 fuel nationwide by 2020, potentially opening the door to much greater imported quantities from the US. China has not made a significant purchase of ethanol in nearly 6 months and American stockpiles are growing, reaching a 10 week high of 22.174 million barrels as of last week’s EIA data. Dec corn closed down 1.75 cents after dropping as much as 17 cents and Jul ethanol finished trading at $1.397 per gallon, a contract low.
South Korea’s Major Feedmill Group has issued an international tender for 138,000 MT of corn to be sourced from the US, Black Sea, South America, or South Africa. Following this announcement, South Korean corn purchases in June have now reached 1.5 million metric tonnes. Lower prices due to good American growing conditions and blowback from the US/China trade war has lead to a surge in exports to other Asian countries.
Flash Flood Warnings In Effect In Parts Of Iowa, Nebraska, and South Dakota
E NE, W IA, and SE SD have received good rains over the past week but an additional 2-3 inches on the forecast have led to flood warnings and watchings. The National Weather Service says that recent rains have pushed the Missouri River and its tributaries higher, putting IA and NE counties along the river at risk.
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