Headlines:

  • Republican Senators Say Trump Lifting Summer Ban on Higher-Ethanol Gasoline
    U.S. President Donald Trump on Tuesday announced plans to lift a ban on summer sales of higher-ethanol blend of gasoline, known as E15, Republican senators said. Senator Charles Grassley, a Republican from the farm state of Iowa who had pushed for the policy, shared the announcement standing alongside colleagues after a meeting at the White House. In announcing his plans, Trump “is doing something for agriculture, doing something for the ethanol workers in Iowa, and doing something for the environment,” Grassley told reporters.
  • Soybeans Close Lower on China Concerns, Drier Outlook
    Soybeans closed lower Tuesday on concerns about the ongoing trade dispute between China and the U.S. and the potential for drier weather in the next seven days.  Barclays analysts said in a note to clients that the dispute between the countries — the world’s two biggest economies — won’t end soon. The Financial Times reported that U.S. officials have said President Trump wouldn’t engage in trade talks with China’s Xi Jinping at the Group of 20 meeting next month unless Beijing produces a detailed list of concession. China has such a list but won’t present it without receiving its own guarantees, the newspaper reported. Excessive rain in parts of the Corn Belt the past two weeks has left some producers and traders alike worried about the timing of the harvest, but drier weather is on the way that could accelerate crop collection, forecasters said.  Drier weather is in the six- to 10-day forecast across the Midwest and Delta, which will favor corn and soybean harvesting, forecaster Radiant Solutions said in a report. Precipitation should ease “a bit” in the northern and western Midwest in the next week.

Summary:

Hurricane Michael is projected to make landfall mid-afternoon tomorrow. The storm has been growing in strength and is projected to hit Florida’s panhandle as a category 3 and move northeast along the coast. The Crop Production and USDA Supply and Demand report comes out this Thursday noon eastern. Corn prices finished lower on the close. Soybean futures fell for the better part of the day against a backdrop of weak export numbers. The US is reportedly going to apply an additional $267 billion worth of tariffs on China. Soybean export inspections were sluggish at 569,776 tons versus trade estimates that ranged from 500,000-900,000 tons. Reports show that Brazil soybean expectations for exports are 77 million tons which would be up 900,000 tons for 2018. Exports for 2019 are expected to be at 71.9 million tons. Wheat futures bounced back some today. Export inspections were in the middle of trade estimates that ranged from 300,000-500,000 tons, coming in at 423,270 tons.