Today’s grain trade was solidly in the red as the feel good headlines have taken the back seat to fundamental realities in front of us. It seems as if this market needs its daily stimulus of market headlines where a deal is within reach or a certain amount of progress is being made. The overused term, “trade uncertainty”, is still a marketable risk for much of the unpriced farm stored commodities. Producers should be working with their trusted advisors while looking at these potential risks as cash flow needs are quickly approaching.
US trade negotiators have asked China to reduce tariffs on U.S. ethanol as part of the latest round of trade talks. According to Reuters, Ag Secretary Purdue mentioned to that tariff levels below 15 percent, but did not mention what exact level trade officials were looking for. China’s current tariff on U.S. ethanol tallies up to 70 percent, which has effectively stopped any ethanol exports into China for the time being.
March corn finished 4 cents lower at $3.66 . March soybeans closed 8 cents lower at $9.03 . March Chicago wheat closed 6 cents lower at $4.60 .
For more information, you may contact Brock Beadle at 515-341-7040, or e-mail at firstname.lastname@example.org. The opinions and views expressed in this commentary are solely those of Brock Beadle. Data used in writing this commentary obtained from various sources believed to be accurate. This commentary is intended for informational purposes only and is not intended for developing specific commodity trading strategies. Any and all risk involved with commodity trading should be determined before establishing a futures position.