Grain Tidbits - August 24, 2018

12:40 PM 8/24/2018

Everyone got their hopes up when it was announced that China and the United States were going to hold meetings regarding the current tariff situation. These were low level talks, but nonetheless were still negotiations. These talks ended Thursday, and no issues resolved it seems. The US put $16 billion of tariffs on Chinese goods, which makes the total thus far at $50 billion. The Chinese have matched these tariffs. The trade assumes this trade war will continue for the foreseeable future. 

There has been a lot of interest in soybean basis levels. There have been sources that indicate a lot of coverage already by soybean processors; more than normal. Solid basis bids are becoming increasingly difficult to find, and that trend could easily continue forward. Pacific Northwest soybean bids remain nonexistant due to no business from the export side of things to China. US beans are at a greater discount to Brazil than the tariffs. China still has shown no interest in purchasing from the US. One reason could be that they are attempting to prove to the US they can live without buying our beans. Another reason could be they are looking at total stocks, and betting prices will move lower.

The Pro Farmer Midwest Crop Tour ended Thursday.  Their final numbers will be posted after the close on Friday. The only state throughout their tour below last years estimate was Minnesota.  

Thanks for your patronage,

Jim Gallagher

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