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At least it did not come as a surprise. Unlike the boost in corn yield by the USDA last week, the announcement that the White House is moving ahead with tariffs on an additional $200 billion of Chinese goods have been greeted with a somewhat muted response but a negative one nevertheless for the soy and corn markets. Wheat has received a pardon this morning. For its part, China says they will retaliate but have not been very specific about what fashion that will take this time around. For good measure, in case this did not strike enough fear into the Chinese hearts and minds, President Trump followed up by stating if there is any retaliation, the U.S. will impose tariffs on the last $267 billion left untouched.
Moving on, in the weekly update it turns out harvest in corn had not progressed quite as much as the trade expected; 9% complete compared with a historical average of 6%. With 54% of the crop now deemed mature versus the average at this date of 36%, weather permitting, the pace should pick up rapidly. Of course, with corn at these price levels, I suspect growers will allow mother nature an opportunity to remove as much moisture as possible. Bean harvest was about as expected at 6% compared with the normal for this date of 3%.
The NOPA soy crush for the month August was a bit lighter than expected, coming in at 158.89 million bushels compared with an estimated 163.9. Even then, for late summer this is not a bad number.
Now that the east coast storms are subsiding, we are beginning to hear preliminary reports of damages in the livestock sector. It is estimated that around 2 million chickens were killed due to flooding and it is difficult to believe that number will not rise. No major death loss problems in hog operations have been reported as of yet.
On a more hopeful note, Canadian negotiators are returning to Washington again this week to resume discussions. One of the sticking points has continued to be dairy, but I understand Canada has been offering up concessions on this topic.
Seeing I find little other market influencing news around this morning, there was one story that caught my eye to share. It appears that Coca-Cola, and I suspect other soft drink manufacturers, are looking into entering the cannabis drink market. I understand these products are intended for “medicinal” uses, not for getting a buzz on. Be that as it may, there are just too many smart-alecky comments that can originate from this to even begin. Let’s just leave it with, you “Can’t Beat The Feeling!” (Coke 1987)
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