News during the week that China may commit to buying $30 billion dollars in U.S. ag goods. That commitment is expected to include buying more U.S. corn.
Doug Werling with Bower Trading is skeptical. During an interview with Tyne Morgan on AgDay-TV he said the purchases have to be real and significant.
"Well the market is taking a stance that talk is cheap," says Werling. "It has to be a significant amount and much more than anybody's even thinking."
Werling says China moving into the market is only a $.10 to $.20 bump while planting and carryover are likely to have a much larger impact.
"Until we get rid of this China [related] gray cloud over the markets, supply and demand don't carry the weight they used to," says Werling. "You're just stuck in purgatory right now."
For more on Werling's thoughts watch the video clip above.
Ag Traders Skeptical on Corn Buys