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Grain Comments  09/19/18 8:40:15 AM


Good morning. Grains and soybeans are trying to rally this morning as the latest tariffs on Chinese goods have seemingly been factored into markets. In the short run, it is expected that the U.S. will focus on negotiating new trade deals with Canada, Japan, and the EU before negotiations with China begin in earnest. The Canadian Prime Minister is being pressured by business and political leaders to reach an agreement with the U.S. on a new NAFTA deal. The flooding from Hurricane /Tropical Storm Florence is said to have killed nearly 3.5 million poultry and 5,500 hogs in North Carolina which exceeds the total killed during the last hurricane to hit the state. A representative from one of China’s largest soybean processors said yesterday that China will put its pig herd on a low soymeal diet to reduce reliance on U.S. soybean imports. Whether or not the Chinese can or will change feed rations drastically remains to be seen. Wet weather across Minnesota and most of Iowa has halted harvest with more rain expected today and tomorrow. Corn and soybean harvest remains active across most of Illinois and Missouri. Extended forecasts show a pattern change to cooler than normal across the Midwest for late month and the first half of October. The northern Midwest may see freezing temperatures early next week. The drought that is affecting Australia continues to get worse as little rain is forecast the next two weeks. September is normally the wettest month in Australia. Wheat prospects continue to decline down under. U.S. soft wheat offers are currently the lowest cost offers in the world. Declining Gulf values this week have pushed U.S. corn offers to the lowest cost in world export markets. Markets are trying to push higher, but there are currently no major bullish influences for corn or soybeans. A two-side trade looks like a good bet today. Have a good Wednesday.




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