The government shutdown continues into the New Year with no sign of reopening. As the shutdown continues, traders are concerned the January 11th World Agriculture Supply and Demand Estimates (WASDE) report will be delayed, according to Paul Greorgy of Allendale Inc.
“This could cause a surge of USDA data to be released within a short period of time (2 weeks of export sales, CFTC updates and the January crop report),” he says.
In addition, export sales reports from USDA are on hold, which has traders speculating continued purchases by China.
Still, Greorgy says grain markets have traders optimistic anticipating more sales to China.
“U.S. Soybean Futures closed at their highest prices in over a week on hopes China will make additional purchases as the trade war lightens up between China and the US,” he says.
Negotiations between President Trump and Chinese President Xi Jinping are expected to start on January 7th.
Trump says initial talks with China are going well.
“Just had a long and very good call with President Xi of China. Deal is moving along very well,” he said. “If made, it will be very comprehensive covering all subjects, areas and points of dispute. Big progress being made.”