Soybeans Trade Higher
Dec 12, 2018
Soybeans Trade Higher As President Trump Claims China Is “Back In The Market”
In an interview with Reuters, President Trump stated that after his fruitful meeting with Chinese President Xi Jinping in Argentina for the G20 Summit that China would be buying a “tremendous” amount of US origin soybeans. While President Trump told reporters that China is “back in the market” for US beans, China has yet to publicize any purchases. In the overnight session, Jan 19 soybeans traded nearly 8 cents higher to $9.23 per bushel as the market looks for signs of an end to the US-China Trade War.
Export Sales Announcement
Export sales of 130,632 metric tons of soybeans for delivery to Mexico during the 2018/2019 marketing year. Export sales of 110,000 metric tons of soybeans for delivery to unknown destinations during the 2018/2019 marketing year.
President Trump Claims China Is “Back In The Market” For Soybeans, May Halt Farmer Payments
The White House has been delaying approval for a second round of payments to be made to farmers following the sharp decline in commodity prices due to the Trade War with China. Sources say that the Trump Administration’s Office of Management and Budget has been holding off on approving the new payments because of a possible resolution to the trade tension between the US and China that may cause prices to break higher. Back in July, the USDA had authorized up to $12 billion to be used as aid for farmers and ranchers affected by the escalating rhetoric between President Trump and Beijing.
Yesterday’s WASDE Does Little To Excite Corn, Soy Markets, Wheat Sees Exports Fall
In yesterday’s Dec WASDE from the USDA, corn saw demand weaken as total usage for ethanol fell by 50 million bushels. Imports also fell by 5 mbu, leading total US ending stocks to rise by 45 to 1.781 bbu. In the US, there was no change to supply and demand for soybeans with ending stocks remaining a record large 955 mbu. Brazilian production was raised by 1.5 to 122 MMT. For wheat, the USDA dropped their exports figure by 25 mbu, leading ending stocks to rise by the same amount to 974 mbu, nearly 11% lower than the previous year. Global wheat supplies rose as Russia was revised to see a larger carry-in.
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