Monday Brought a New Riff in Escalating Trade War
Jun 19, 2018
Trump’s Naughty List Grows
Monday night brought a new riff in the escalating US-China trade war when President Trump said he would add an additional 10% tariff on $200 billion of Chinese goods. China responded immediately overnight saying they will fight back firmly with "qualitative" and "quantitative" measures if the US moves forward with additional tariffs, the commerce ministry said, accusing the U.S. of initiating a trade war. US and global equity markets were rattled by the latest announcement overnight as they were down 1%.
Crop Conditions Improve
US corn conditions inched higher to 78% good-to-excellent according to USDA on Monday. This was a slightly better read than last week’s 77% and last year’s score of 68%. Only a few states seem to be struggling this season with MO being the most notable problem area with only 48% of the crop in good-to-excellent condition. Soybeans also are faring well, although they slipped slightly on the week to 73% good-to-excellent from 74% last week.
The Taiwan Flour Millers' Association has issued an international tender to purchase 95,350 MT of grade 1 milling wheat to be sourced from the United States. Japan's Ministry of Agriculture is seeking to buy 91,188 MT of food-quality wheat from the United States and Australia in a regular tender that will close late on Thursday. Canada was excluded from the list following last week’s finding of GMO wheat in exports from that country.
Weather Stays Ideal
Cool weather is expected from the US Central Plains states into the Corn Belt through the better part of the next 10 days. Precipitation totals could be 1 to 4 inches above normal from Nebraska through Ohio (west-east), and Illinois/Iowa through Oklahoma/Arkansas (north-south). By the end of June a high pressure ridge over the Midwest could return bringing heat/dryness back into the picture by July. However, recent and upcoming rainfall will recharge soil moisture across the major corn/soybean regions to such an extent that crops should be able to withstand episodic heat/dryness.
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