Thunderstorms Expected Across the Midwest
Aug 06, 2018
China Drafts Retaliatory Tariffs To Respond To Trump’s Latest Round
Beijing has announced a proposal of tariffs on $60 billion worth of US goods as a response to President Trump’s latest threat to implement a 25% tariff on $200 billion of goods. The Chinese Ministry of Finance states that these proposed tariffs would be applied to goods ranging from aircraft to liquefied natural gas (LNG). China is the world’s 3rd largest importer of LNG but demand is growing as they look to move away from coal for energy towards cleaner burning LNG. Sec of State Mike Pompeo met with China’s top diplomat, State Councillor Wang Yi on Friday in Singapore and both wish to resolve tensions but offered no details.
Managed Money Scales Back Shorts For Corn And Beans, Continue To Buy Wheat
Managed money reduced their net short position in corn by nearly 69,000 contracts from last week, but remain net short at 95,613 contracts. Crop conditions in top producing Midwestern states and strong export demand may have spurred the short covering. Funds also cut down shorts for soybeans by almost 7k lots to a net short position of 66,559 contracts.
Money managers remain buyers of wheat, with their net long position in Chicago SRW increasing by nearly 29k to 51,277 contracts. They also increased their net long position for KC HRW by over 18k to 37,981 contracts.
Thunderstorms Expected Across Iowa, S Minnesota, As Well As Parts Missouri
Areas along the border between Missouri and Kansas are forecasted to receive 2-3 inches of rain in the first half of this week. Parts further south in Missouri could see as much as 5 inches of rain, and even more severe weather with hail and possible tornadoes later this week. Almost the entire state of Iowa and S Minnesota can also expect rains of 3-4 inches in the forecast. The Eastern Corn Belt is expected to see good rains this week, especially Michigan, with 3-4 inches in the forecast.
The risk of trading futures, hedging, and speculating can be substantial. FBN BR LLC (NFA ID: 0508695)