- Negotiations Still Best Tool in U.S.-China Trade Row -Perdue
U.S. Agriculture Secretary Sonny Perdue on Wednesday said negotiations were the preferred method for easing trade tensions between China and the United States. “Our first goal is to negotiate ourselves out of the saber rattling that has occurred and to make sure that these market disruptions do not have a permanent impact,” Perdue said at a hearing of the Senate Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration and Related Agencies. If negotiations fail, Perdue said he would deploy funds authorized by the recently passed $1.3 billion spending bill to mitigate pain to American farmers caused by a trade dispute, but he did not specify which programs would be used.
- 2017/18 Brazilian Soybean Crop over Three Quarters Harvested
The Brazilian soybean crop is 77% harvested compared to 82% last year and 77% for the 5-year average according to AgRural. The harvest is complete in central Brazil. In southern Brazil the soybeans are 84% harvested in Parana, 40% in Santa Catarina, and 35% in Rio Grande do Sul. The early yields in Rio Grande do Sul were better than expected, but the yields of the later maturing soybeans are less than expected. They blame the disappointing yields on soybean rust. Rio Grande do Sul ended up with the most cases of soybean rust in Brazil. With some disappointing yields in Rio Grande do Sul and some yields not quite as high as expected in Parana, I think some of the highest estimates might decline a little in the weeks ahead to a range of 115 to 116 million tons. In northeastern Brazil, the soybean harvest is 59% to 60% complete and farmers in the region are expecting record yields. This will make two years in a row for record soybean yields in northeastern Brazil.
Quiet day of news led to a setback in grain prices. Corn settled 2.25 to 2.50 cents lower through the December contract which was also the lower end of the trading range. The overnight buying interest dried up and Corn was not able to sustain overnight gains through the regular day’s session. Soybeans finished 1.50 to 2.25 cents lower through the November contract. Opening gains through the early part of the regular session attributed to sales information to Argentina and expectations of huge weekly export sales in tomorrow’s report. Later in the day those gains were met with profit taking. Wheat finished 5.50 to 7.50 cents lower now that short covering is drying up a bit. Additionally, the prospect of rain for the Southern Plains this week helped to ease the recent advance progress.