Headlines:
China, U.S. Seek to Narrow Gap on Trade for Trump, Xi to Close at a Summit
Chinese and U.S. negotiators are focusing this week on producing a broad outline of a trade agreement for their presidents to clinch at a possible summit, according to people with knowledge of the matter. Officials holding trade and economic portfolios for both governments are seeking to narrow the still-substantial gap between the concessions China is willing to offer and what the Trump administration will accept. Discussions between midlevel officials began on Monday in China’s Commerce Ministry. Then, a high-level U.S. delegation led by Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will hold two-day talks, starting Thursday, with Chinese Vice Premier Liu He and his entourage. Both sides hope to hash out a framework of a deal, the people said, with the goal of getting it finalized in a meeting between President Trump and Chinese President Xi Jinping. The date for such a session hasn’t been set. Mr. Trump last week appeared to rule out a meeting by the March 1 deadline for a deal—after initially suggesting he was planning on meeting with the Chinese leader.
Trump Signals He May Not Support Border-Funds Deal
President Donald Trump expressed displeasure on Tuesday with a deal by congressional negotiators on border security spending that offered no funds for his promised U.S.-Mexican border wall, but did not reject it outright and indicated he did not expect another government shutdown. Trump, who triggered a 35-day closure of about a quarter of the federal government with a December demand for $5.7 billion from Congress to help build the wall, said he has yet to decide whether to support the agreement reached on Monday night by key Democratic and Republican lawmakers. Funding for the Department of Homeland Security, the Justice Department and a host of other agencies is due to expire on Friday under the stopgap spending measure passed last month by Congress to end the longest federal shutdown in U.S. history.
Summary:A number of USDA reported flash sales helped to propel the grain markets higher today. Chicago Mercantile Exchange grain markets will be closed next Monday for President’s Day. After the regular close this Friday, February 15th, the grain markets will re-open until Monday night, February 18th, at 7:00pm Central. Brazil’s CONAB estimated their corn crop at 91.652mmt which was up 460k mt from their January estimate. They lowered their first crop estimate but increased the Safrinha (second crop corn) estimate. Currently USDA is at 94.5mmt. Two South Korea feed makers bought a total of 203k mt in a tender that closed yesterday. At least some of it is expected to be sourced from South America. CONAB reduced their estimate of Brazil’s soybean production by 3.5mmt to 115.3mmt, lowering yields 3%. Currently the USDA is projecting 117mmt. IMEA, in Matto Grosso, the largest soybean producing state in Brazil, estimated that state’s soybean harvest is 53% complete. Soybean inspections yesterday were 1.063mmt, slightly below the previous week’s 1.091mmt. China accounted for almost half of the total. Yesterday morning, USDA announced a sale of 120k mt soymeal to Ecuador (half for the 2018-19 marketing year and the other half for 2019-20 marketing year).
