More Storms Expected Over The Northern Midwest
Aug 03, 2018
Wheat Futures Spiked During Yesterday’s Session Due To Rumors Of Halted Ukrainian Exports
A report from Ukraine’s Ministry of Agriculture was released yesterday, claiming that the government there would reduce exports of all grain due to drought conditions seen there. Shortly after this announcement, the Ministry clarified their message that they would only discuss the amount of exports, not make any cuts. Following the initial announcement, Sep Chi SRW traded as high as 593, Sep KC wheat 597.25, and Sep MN spring wheat 634.75.
This news and ongoing droughts in Australia, N Europe, and the Black Sea Region has led to the Chicago SRW contract to rally more than 6% this week.
Export Sales Announcement
Optional origin sales of 130,000 metric tons of corn for delivery to Vietnam during the 2018/2019 marketing year. An optional origin contract provides that the origin of the commodity may be the U.S. or one or more other exporting countries.
China Promises To Retaliate To Latest Round Of US Tariffs
Chinese trade officials made very clear that China will respond in kind to any more tariffs put in place by the United States. Chinese diplomat Wang Yi has urged American policy makers to “calm down”. Earlier this week, President Trump requested that his trade team consider imposing more tariffs of 25% on $200 billion worth of goods. Both China and the US claim that the door is open for trade negotiation but there have not been significant talks since early July, when the US first announced $34 billion worth of tariffs.
More Storms Expected Over The Northern Midwest, Nebraska And Iowa See Good Rains
The National Weather Service’s 1-5 day forecast is calling for thunderstorms over central Minnesota down through to S Wisconsin. Some areas in either state could see 3-4 inches of rain. More rain is expected over E Nebraska and almost the entire state of Iowa, with 2-3 inches of precipitation expected. The NWS has also issue a fire hazard for counties in NE Kansas and NW Missouri. The risk is considered “moderate”, with 15-25 mph winds and humidity around 25%. Thankfully, some scattered storms are forecast for these areas on Saturday.
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