Soybeans and livestock rally early, with corn and wheat lower.
Allison Thompson, The Money Farm, says soybeans are seeing follow through buying on the de-escalation of the China trade war.
President Donald Trump said the current 145% tariffs on China “will come down substantially, but it won’t be zero.”
Treasury Secretary Scott Bessent said earlier on Tuesday he believes a trade deal with Beijing can be reached. He reportedly stated that the current standoff with China is unsustainable, and that he expects the situation to de-escalate soon.
Meanwhile corn and wheat were lower.
Thompson says corn is seeing pressure from the fast planting pace and ideas of higher acreage but it also is tied to the expiration of May options on Friday.
Option expiration is also weighing on wheat as well as forecasts for much needed rain in the hard red winter wheat production areas and with the fast spring wheat planting pace at 17% in USDA’s Crop Progress Report.
Cattle are higher with new contract highs in live cattle following the huge recovery Tuesday and continuing today in the S&P and other outside markets.
The stock market has surged on the more favorable China trade comments but also as President Trump has said he is not going to fire Fed Chair Jerome Powell.
Cash trade was also higher last week and there are ideas of strong prices again this week, which is also pulling up the futures.
