Headlines:

  • President Trump says there will be an announcement regarding US/Chinese trade tariffs made later today.
  • The US says they are ready to begin talks with China, whenever they are ready to get serious about fair negotiations.
  • NAFTA discussions are expected to continue this week, with hopes of an agreement coming soon.
  • Oil near flat as market weighs U.S.-China trade tensions, Iran sanctions
    Oil prices were little changed on Monday as the market weighed deepening trade tension between the U.S. and China that is expected to dent global crude demand and potential supply tightening due to Iran sanctions. rent crude futures dipped 4 cents to settle at $78.05 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell 8 cents to settle at $68.91 a barrel. Top White House economic adviser Larry Kudlow said on Monday that he expected the United States would soon announce tariffs on an additional $200 billion worth of Chinese goods. Administration officials said on Saturday that President Donald Trump was likely to announce the new tariffs as early as Monday. “That has the potential to be a demand-killer and that is why the market is trading into the red,” said Bob Yawger, director of energy futures at Mizuho in New York.
  • Coffee producers seek urgent talks with industry on low prices
    Coffee producers are seeking urgent meetings with major customers such as Nestle, Jacobs Douwe Egberts and Starbucks to find ways to shore up prices that have slid to 12-year lows. The World Coffee Producers’ Forum, whose members account for about 85 percent of global production, held a press conference on Monday after meeting to discuss the price crisis. “It is today a desperate moment for the 25 million coffee growers around the world. It is a crisis beyond imagination,” said Roberto Velez, chief executive officer at the Colombian Coffee Growers Federation. “We need the industry and consumers to realize that this is a situation that cannot be maintained if we want the coffee industry to survive,” he added. Arabica coffee futures fell to a 98.65 cents per lb on Sept. 4, the lowest for the second position contract since July 2006. They continue to hover around that level, dipping to a low of 98.90 cents on Monday. The market has been depressed by a record crop in Brazil this year while speculators have also made a huge bearish bet on the New York-based arabica coffee futures market, adding to the downward pressure on prices. Rene Leon Gomez, the executive secretary of Promecafe, which represents growers in Central America and the Caribbean, said they were seeking to set up a dialogue with industry leaders across the world and also have a campaign to raise consumer consciousness about the crisis.

 

Summary:

Grain and Oilseed markets finished lower on the day. The trading range was narrow as traders consider the possibility of scheduled Chinese tariffs to be implemented this week being held off. The US and China may be in trade negotiations this week. The US Dollar was weaker on the day and looks to continue lower. At 4pm eastern it was trading at about 94.50. Upon breaking 94.30 we anticipate a possible run down to about 93.00.

Exporters reported export sales of 241,000 metric tons of soybeans for delivery to unknown destinations during the 2018-19 marketing year to the USDA. Investors that had been optimistic of a potential bottom in corm are growing less optimistic. The Commitments of Traders report from Friday showed the funds had been short 63,000 corn futures contracts, short 68,000 soybeans and long 61,000 wheat. The bearish USDA report last Wednesday accelerated some selling leaving estimate form the next report to come with funds being short over 100,000 contracts of corn.