Tremont Coop Grain Commentary

Friday, August 3rd

7:42 AM

Current market: corn down 1, beans down 11

Overseas markets continue to feel the pressure of tariff talks with most of Asia closing lower in the overnight. The Chinese yuan continues to weaken against the dollar and their economy is becoming more and more stressed with their weakened currency; Chinese officials are now looking at more monetary policy to help slow the effects of this looming trade war. European markets are mostly higher at midday on generally positive earnings reports but Bank of England governor says the chances of UK leaving the EU are "dangerously high," putting pressure on the pound despite a rate hike yesterday. The US economy added 157k jobs in July and unemployment slipped to 3.9%; the jobs number was "missed" according to experts, but with the economy at near-record low unemployment, how many more jobs can they add? Crude bounced off its support yesterday and is trading little unchanged, gold is bouncing off its lows and US equities are pointing towards small gains.

New proposed tariffs on US goods to include soybean oil, peanut oil, corn oil, olive oil, smoked and salted beef, coffee, wheat flour and spirits, per Chinese government. US officials failed to get China to stop importing oil from Iran, which will likely give the President more ammunition in his already-heated trade spat with both countries. Analysts are predicting that China may run short of soybeans in the fourth quarter.

European crops continue to worsen, and yesterday's hot wheat markets might have been a bit overdone. As the Ukrainian crop continues to come under pressure, exports out of that country are threatened even more so then they already are. German farmers are seeking tax relief as they deal with a drought. US sorghum is working into European feed markets. Weather markets, next week's rundown of reports (Chinese and French crop reports Wednesday, CONAB on Thursday, WASDE on Friday) and the trade and tariff talks will continue to be the focus of trade for the coming week.

 

AG


 

Disclaimer: This commentary does not represent the views of Tremont Cooperative Grain Company, but rather one author's opinions. Data used in this commentary is taken from sources believed to be accurate, and is intended for informational purposes only and should not be solely used to conduct any type of trading strategy. For more information, please contact Tremont Cooperative Grain Company at 309-925-4981, or email info@tremont.coop.

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