Morning Comments August 2, 2019

July Soybeans close up 1

Opening Calls:

Corn up 4

Beans up 5

Yesterday, the September and corn contract fell 7 ½ cents on disappointing export sales again, and President Trump’s tweet on more tariffs placed on Chinese goods. But corn is attempting to gain back some losses this morning with the market being oversold, and drier forecast ahead. Beans tumbled 17 cents lower on the August and 16 ¼ cents lower on the November contract. President Trump’s tweet in regards to adding 10% to $300 billion of Chinese goods pretty much ensured that there will be few to no soybean sales to China. Beans have recovered some of its losses on the overnight with the drier forecast, late crop, and uncertainty on acres, but the demand picture remains bearish.

Included below is a tweet below from Karen Braun, this is a perfect example when the dollar is high, and it’s cheaper to buy corn somewhere else. The soybean export numbers also show how much African Swine Fever is affecting the Chinese demand for beans.