Last Minute Deal to Upgrade NAFTA
Oct 01, 2018
Canada And The United States Reach A Last-Minute Deal To Upgrade NAFTA
Late on Sunday night, the US and Canada signed an agreement that would save NAFTA and would allow Canada to move forward with reforms already agreed to by the US and Mexico. Canada has agreed to give US dairy farmers access to 3.5% of its $16 billion domestic dairy market, in return for an anti-dumping trade dispute mechanism that the Canadian government wished to see preserved from the original NAFTA. Auto manufacturing will also be re-incentivized to encourage more production in the US and Canada, at Mexico’s expense. The US’s ability to put tariffs on Canadian steel and aluminum were not addressed. President Trump plans on signing the deal at the end of November and then sending the bill to Congress for approval.
Commitment Of Traders Report Shows Speculators Short Covering Corn, Soybeans During Last Week’s Rally
For the week ending on Sep 25, managed money reduced their net short position by 18,497 to 112,779 contracts amid that week’s near 20-cent rally. Corn’s outlook remains bearish, however, with last week’s USDA Quarterly Stocks Report showing corn stocks coming in above expectations at 2.14 billion bushels. For soybeans, money managers cut down their net short position by 11,199 to 58,614 contracts. Soybeans also saw an increase for their stocks in the USDA report, rising to 438 million bushels. Speculators made only slight adjustments for Chicago SRW, reducing their net short position by 260 to 1,119 contracts. The net long position for KC HRW was reduced by 3,054 to 34,030 contracts. Minneapolis HRS’s net short position was also reduced by only 53 to 2,876 contracts.
More Moisture Forecast Across The Corn Belt As Temps Set To Drop In The West
Over the next 5 days, several inches of rain are expected in different pockets around the Corn Belt. S Wisconsin, E Iowa, central Illinois and Indiana, NW Missouri, and NE Kansas have up to 3 inches in the forecast between now and Friday. The GFS weather data calls for more severe storms in the 6-10 day forecast, with significant rainfall events across nearly all of the Dakotas, Minnesota, Iowa, Illinois, and Michigan. Temperatures are also expected to fall in the western half of the Corn Belt, with the Dakotas, Minnesota, and Wisconsin showing daytime highs in the mid 50s. Parts of North Dakota saw had an overnight frost last week, possibly damaging to some still-maturing corn and soybean plants.
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