Market News

Mixed response to tariff news

Soybeans ended the day lower amid tariff concerns.  May contracts were down 18 cents at $10.11 and 1/2. China is the top purchaser of soybeans in the world, and the 34 percent tariff on the country could create some hiccups in business moving forward.  The market will have to wait and see what any potential retaliatory tariffs might look like. Soybean oil was sharply lower on Thursday.  There was a bright spot as soybean export sales saw 21 percent increase from the previous week.  However, export sales for soybean cake and meal hit a marketing year low, and soybean oil sales were also lower.

Corn finished the day mostly modestly lower.  May contracts were at $4.57 and 1/2 down 1/4 cent.  Products included in the US-Canada-Mexico Agreement appear to be protected, which is good news for the U.S., as Mexico is the largest purchaser of U.S. corn.  The trade will continue to navigate any uncertainty and volatility in the coming weeks.  The USDA’s Export Sales report was supportive for corn, with sales up from the previous week and the 4-week average, a little bit of good news in an uncertain market.   

The wheat complex was mixed.  The U.S. dollar has dropped significantly Thursday, which is supportive of wheat exports.  The markets didn’t spend much time reacting to Wednesday’s tariff news.  More than likely, weather conditions were more of a factor. There have been heavy rains from Texas through the Ohio Valley.  But the forecast for the Southern Plains remains hot and dry.   According to the latest drought monitor, nearly 40 percent of winter wheat growing areas are in some form of drought.