Morning Comments – April 9th

China Pushes Back on US Trade War

  • China said it would be impossible to negotiate under “current circumstances”.

  • The comments come after U.S. President Donald Trump on Sunday predicted China would take down its trade barriers, and expressed optimism that both sides could resolve the issue through talks.

  • US grains and stock market rally loses steam overnight after initial optimism Sunday night begins to fade.

  • Exporters sell 232,500 metric tons of Soybeans for delivery to unknown destinations during the 2017/2018 marketing year. -USDA

Global Soy Trade Realigning

  • World buyers are turning to US soybeans as Brazil prices soar.

  • Friday brought fresh biz to the EU of 458,000 MT, one of the biggest deals to that part of the world in recent history.

  • Brazil prices have been red-hot of late, elevating to a $2 per bu premium over the board last week before backing off late week to a $1.70 a bu premium.

Midwest Weather

  • Dry weather to continue in the Plains while the Midwest to remain cold.

  • Heavy rains of 1 to 3 inches across much of the Delta over the weekend.

  • Temperatures were quite cold over the weekend across the central U.S., but warmer weather is expected later this week. Another round of cold will return by the weekend, however, which will likely delay corn planting and germination.

  • No improvement is expected in the Plains wheat areas over the next 10 days as dry weather continues.

Cold Snap Hits Wheat Belt

  • Temperatures plummeted across the Plains on Saturday morning, with lows ranging from the low to mid 20s across northwestern Texas to the single digits across far northern Kansas and Nebraska.

  • Temperatures broke daily records across most of the Plains wheat areas, in some cases by very large margins. Temperatures were not quite cold enough across Texas to cause damage to the wheat crop, but some spotty damage was possible in western Oklahoma and portions of central and western Kansas, where some of the crop is beginning to joint and temperatures dropped into the teens.

  • Much warmer weather prevailed yesterday and damaging cold is not expected over the next 10 days.

Tender Action Overnight

  • South Korea’s MFG Feed Group bought 125,000 MT of optional origin corn.

  • Australia was the lowest offer for Iraq’s 50,000 MT wheat. US wheat was $30/MT higher than Aussie wheat.

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