This Week in Grain - December 7, 2018

10:23 AM 12/7/2018
The market seems to be in somewhat of a holding pattern trying to figure out what the next news will be coming out of China.  The development of Chinese phone maker Huawei's Cheif Financial Officer being arrested in Canada at the request of the United States is clouding the tariff war. It seems to be anyones guess as to the outcome of that situation. There is reason to believe China will be a buyer of US products, but there is doubt that this will happen anytime soon.  

Even though the fact remains that corn and bean crops were big, the feeling is they were not as big as once thought.
Soybean, corn, wheat and meal all had good export sales this week. Soybean sales were the best since September and are now ahead of pace, but the world has too many soybeans at a time when African Swine Fever is reducing demand within China.

Volatility is the name of the game.  Market uncertainties not only from the arrest of the Chinese executive, but mixed messages from the US and China has market participants nervous.

Jim Gallagher

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