More US Beans to China
Dec 19, 2018
Good Morning from Allendale, Inc. with the early morning commentary for December 19, 2018.
Grain Markets remain optimistic as traders look for more confirmed export sales to China. Overnight sales announcements will be watched closely at 8:00 AM CST this morning.
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Treasury Secretary Steven Mnuchin said that the United States and China are making plans to have meetings in January to negotiate a broader truce in their trade wars. He further added that they are unlikely to have face-to-face meetings before then.
Chinese importers returned to the U.S. soy market on Tuesday for their second round of purchases since the two countries agreed to a truce in their trade war, four traders with knowledge of the deals and the U.S. Soybean Export Council said. One trader said Chinese state-owned companies bought 15 cargoes, or about 900,000 tonnes, on Tuesday for shipment from January to March, deals that would be worth more than $300 million. (Reuters)
Rains in Argentina are being viewed as beneficial as they are helping to increase soil moisture in important soybean areas. The soil moisture will be important come February when the crop will be flowering.
Managed money funds were estimated buyers of 7,000 corn contracts, 3,000 soybeans, 2,000 soymeal, and 3,500 soyoil in yesterday's trade. They were sellers of 2.500 wheat in what was likely profit taking.
The White House on Tuesday indicated that it would try to avoid a partial government shutdown by finding alternate funding for President Donald Trump's border wall if Congress doesn't meet his demands. "We have other ways that we can get to that $5 billion that we'll work with Congress if they will make sure that we get a bill passed that provides not just the funding for the wall, but there is a piece of legislation that has been pushed around ... that provides roughly $26 billion in border security including $1.6 billion for the wall," said White House Press Secretary Sarah Huckabee Sanders. (Politico)
Existing Home Sales data will be released this morning at 9:00 AM CST. Crude Inventories are due at 9:30, and the FOMC will announce its latest interest rate decision at 1:00. Most are expecting them to raise rates.
A new outbreak of African Swine Fever was reported in southwest China according to the country's agriculture ministry. The number of cases is now approaching 100, and has some believing that China will need to import more pork as a result.
Quarterly Hogs and Pigs will be released tomorrow by USDA. Analysts are expecting to see All Hogs at 102.7% of last year, Kept for Breeding at 102.9%, and Kept for Marketing at 102.7%. The report is due at 2:00 PM.
Cattle on Feed will also be released tomorrow at 2:00. Traders expect to see Cattle on Feed at 101.8%, Placements at 93.8%, and Marketings at 101.0%.
Dressed Beef Values were higher with choice up .01 and select up 0.97. The CME Feeder Index is at 145.55. Pork cutout value was up 0.04.