Grains are trading mixed on the overnight session.
Contract lows had grains on edge on Friday, but both corn and soybeans bounced back at the end of the session. Speculative buying spurred the comeback following friendly numbers from the National Ag Statistics Service on January soybean crush at 182.9 million bushels. This put crush 6.5 million higher than a year ago and now 47 million bushels ahead of the USDA forecast. Bulging soybean stocks at wide basis levels are promoting higher crush rates despite lower crush margins than last year. Soybean meal exports continue to remain strong and soybean oil usage has increased from stronger U.S. biodiesel consumption.
U.S./China trade negotiations rumored to be making some headway. The U.S. has delayed the increase from 10% to 25% tariff rates on Friday, as it was considered no longer necessary as talks are progressing. President Trump has asked China to remove all tariffs on U.S. agricultural products. The U.S. has also asked China to remove tariffs on U.S. ethanol to help spur imports into China.
U.S. Secretary of Agriculture Perdue announced Friday that the EPA has confirmed they can implement the new E15 policy by June 1st, in time for summer gasoline blends to included E15. Secretary Perdue has asked the EPA to push the marketplace to be ready by June 1st for E15 blends.
Market Movers: Chinese trade negotiations, acreage debate and export business.
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