Morning Comments – May 30

Corn Crop Score

  • In their first corn condition score of the year, USDA rated the corn crop at 79% good-to-excellent. That was well above expectation of 72% by the trade.

  • It is also well above last year’s rating of 65% at this time of the year and a long-run average rating of 70%. Nonetheless, early season ratings can & do change markedly during the growing season, but the trade overnight was weaker on the better than expected scores.

  • Corn planting neared competition with 92% in the ground while soybeans are 77%

China Trade War Heats Up Again

  • China hit back at the US on Wednesday at renewed threats from the White House on trade, warning that it was ready to fight back if Washington was looking for a trade war

  • On Tuesday, the White House took an about-face on its tone, saying it would impose tariffs on $50 billion of imports from China unless it addressed the issue of theft of American intellectual property. The trade escalation came after the two sides had agreed during talks in Washington this month to find steps to narrow China’s $375 billion trade surplus.

  • “We urge the United States to keep its promise, and meet China halfway in the spirit of the joint statement,” Chinese Foreign Ministry spokeswoman Hua Chunying told a daily news briefing, adding that China would take “resolute and forceful” measures to protect its interests if Washington insists upon acting in an “arbitrary and reckless manner”.

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Weather Outlook

  • Rain from Alberto will bring needed moisture to IL/IN today. Another system is expected on Fri/Sat in the Northern Plains, Upper Midwest and WCB.

  • Latest model shows no relief from hot, dry conditions in SW Plains.

  • Heat to return to the forecast, especially in the 6 to 10 day period.

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