Headlines:                                                                  

  • EPA Delays Obama’s WOTUS Rule Until 2020 While It Writes Its Own Version
    President Trump set out to erase the Obama-era Waters of the United States rule in his first weeks in office. Now the EPA has finalized an action that should keep the clean water rule from ever taking effect. Administrator Scott Pruitt has officially set the effective date of the so-called WOTUS rule for early 2020, long after the administration expects its replacement version to be in place. Farm groups have been outspoken opponents of the WOTUS rule, which spells out the upstream reach of the clean water law, as regulatory overreach onto dry land and low spots in fields. The American Farm Bureau Federation ran a #DitchtheRule campaign on social media, which Trump indirectly mentioned at the group’s convention in early January. “We ditched the rule, I call it. We ditched the rule,” he said in touting his record on tax cuts and regulatory relief. “Today, EPA is taking action to reduce confusion and provide certainty to America’s farmers and ranchers,” said Pruitt in a statement. “The 2015 WOTUS rule developed by the Obama administration will not be applicable for the next two years while we work through the process of providing long-term regulatory certainty across all 50 states about what waters are subject to federal regulation.” Pruitt told senators this week that he anticipated the Trump administration’s substitute rule will be unveiled by April or May and will take effect by year’s end.
  • S. Pork Demand Strong, but Trade Disputes Could Hit Exports
    American consumers are snapping up plentiful low-cost pork, but U.S. farmers are worried that trade spats with key export markets in China, Mexico and Canada could hurt a lucrative part of their pork business. The domestic demand outlook remains bright thanks to the strong U.S. economy, upcoming spring grilling season and Easter holiday ham purchases. U.S. goods in general are attractive to foreign buyers thanks to the recent drop in the dollar. However, trade disputes with China and slow progress in North American Free Trade Agreement (NAFTA) talks have clouded prospects for U.S. pork exports, which are crucial for the industry, as roughly one quarter of pork produced in the United States is exported.

 

Summary:

The Corn futures market traded lower overnight and at the open before recovering by the end of the day. Spillover weakness from the Soy complex had its way initially with both Corn and Wheat but they managed to finish the day flat-Corn and a couple of tick lower for Wheat. Expectations of a strong Corn export sales report led the charge for the recovery. Profit taking at key resistance after marching up for 12-13 trading days finally stalled the Soybean advance. Once the from month contract hit the 1000 mark, sellers seemed to come out of the woodwork. The preverbal 1000 level can often operate as a first line of defense (or support for that matter) when markets first hit that number regardless of the direction it is starting from. Additionally, weather forecasts are starting to show the chances of rain in Argentina’s dry areas. The dryness in Argentina was a catalyst in the upside movement in Beans. The wheat market traded lower on profit taking and increased selling on yesterday’s rally.