Good morning! Corn, soybean and wheat markets are all higher this morning. Saturday, China and the US agreed to a 90 day truce in their current trade war. The US agreed not to implement an additional 15% tariffs on an additional $267 billion, while China agreed to” buy agricultural products from the US.” However, China has not yet stated they will reduce tariffs on US grains. The tension remains very high as each side attempts to interpret the agreement to suit their needs.
Corn: Z/H 11 ¼ carry.
Soybeans: F/H 12 ¼ carry.
Short-covering and optimism after the Saturday night dinner between President Trump and President Xi kept prices in the black today, but we closed well off the daily highs. Soybeans should get the biggest benefit of an agreement between the two countries, but corn should also get the benefit through DDG’s and ethanol.