Headlines:
- Trump Administration to Start NAFTA Renegotiation
The Trump administration today informed Congress that it intends to officially begin renegotiating the North American Free Trade Agreement with Mexico and Canada. The much-anticipated notification gives Congress a 90-day window to work with the Office of the U.S. Trade Representative, the Commerce Department and other agencies to help develop priorities in overhauling the pact with two of our largest trading partners.
Summary:
Corn, Soybeans and Wheat all bounced back in overnight trading and continued with strength for the balance of the regular trading session. Bargain hunters stepped in looking for deals and the buying frenzy set the tone for what would be quite the positive note to end the week. Prices fell yesterday when the Brazilian Real suffered from news of a bribery scandal involving its country’s president. The currency had fallen to its lowest level since December. It has since steadied leading overseas importer to be more favorable to US goods.
Additionally, a band of rain hit the eastern Corn Belt leaving behind between .30” to .80” of rain. The temperatures in the upper Midwest have cooled down to the 50’s and 60’s and there is no indication of big changes in the forecast given that there are a few more days of rain scheduled to the Midwest. The move to the upside for both Corn and Soybean posted the largest daily volume in quite some time suggesting that this move to the upside may be here to stay. If short covering from Managed Money comes into play we could be looking at prices moving up really fast.
According to the USDA, the weekly sales of Corn, Soybeans and Wheat all rose in the week that ended on May 11th.
