Headlines:
- President Trump has nominated Neil Gorsuch for the open position on the Supreme Court
- Senate panel advances Trump’s nominee for attorney general
Today the U.S. Senate Judiciary Committee voted on to confirm Senator Jeff Sessions as attorney general of the United States, sending President Donald Trump’s pick to be the nation’s top law enforcement officer to the full Senate for a final vote.
- Soybean futures ‘may fall sharply’ if China-US trade war kicks off
Chicago soybean futures may “fall sharply” if the US enters a trade war with China – but prices in Latin America would benefit, Societe Generale said, terming the risk of a levy battle a “major concern”. The mandate voters have given Donald Trump, who became US president last week, to “correct the trade balance” with countries such as China, Japan and Mexico from which the US imports far more than it exports “has raised concerns about a trade war”, SocGen said.
Summary:
During the Iowa Renewable Fuels Association’s annual meeting yesterday, organizers showed a couple of videos of then presidential candidate Donald Trump voicing ‘unmistakable’ support for ethanol and the Renewable Fuel Standard (RFS) that mandates the oil industry to blend the biofuel with gasoline. Some of the speakers at the event had previously expressed concern over President Trump’s cabinet picks being heavy with those who were at one time or another opposed to ethanol. Ethanol and RFS is seen as gaining traction in the Trump administration which may have lent a hand in some of the strength today.
A couple days again it was the perspective of many that the sky was falling. We got word that weather in Argentina was better over the weekend and “that was why Soybean futures melted on Monday”. On Monday, we wrote that it was potentially a head fake and perhaps a move to shake out weak hands. It was particularly easier to push prices lower because of the decreased participation by the Asian markets with them celebration the Lunar Year. Today we bear witness to the grains and soy markets putting up big rallies. The word on the street now is “grain prices surge as funds pile in”. The trade now claiming that fund buying is the reason for the new-found strength. A simple look at some of our chartwork and you find that the movement that we are seeing is consistent with action hitting key support and resistance levels in conjunction with time factors. Corn moved up 7.75 cents, Soybean was up 12.75 and Wheat was once again the leader adding 13 cents.
