3 Big Things Today, July 31
1. Soybeans Lower Overnight as Trade Talks End Early
Soybeans were lower in overnight trading after trade talks between the U.S. and China ended early with no resolution in sight.
The talks ended up being a dinner and a half day of negotiations. President Donald Trump and Chinese officials traded barbs, accusing each other of reneging on promises they’d made.
Export sales of soybeans are down 22% year over year, as the trade war between the countries continues with no end on the horizon.
A Chinese delegation reportedly will inspect meal-crushing plants in Argentina, which is the first step toward China purchasing product from the South American country, Reuters reported.
Producers and traders also are keeping an eye on the weather this morning, as some showers are expected in parts of the Midwest including Iowa and Nebraska, according to weather maps.
Soybean futures for November delivery lost 2½ to $8.94¼ a bushel overnight on the Chicago Board of Trade. Soy meal declined 10¢ to $302.60 a short ton, while soybean oil dropped 0.13¢ to 28.70¢ a pound.
Corn futures for December delivery fell ¾¢ to $4.20¼ a bushel overnight.
Wheat for September delivery declined 3¢ to $4.94¼ a bushel, while Kansas City futures lost 2¼¢ to $4.31¼ a bushel.
2. U.S.-China Negotiations End Early as Trump, Beijing Trade Barbs, Trade War Rages On
Negotiations between the U.S. and China were short-lived as Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin reportedly left Beijing after dinner on Tuesday and talks Wednesday morning.
President Donald Trump on Twitter Tuesday – just as talks were set to begin – accused China of stalling, saying that if they wait to make a trade deal until after the 2020 election, if he wins, any agreement “will be much tougher than what we’re negotiating now” or possibly no deal would be made.
“China … was supposed to start buying our agricultural products now – no sign that they’re doing so,” he said in a separate tweet. “That is the problem with China, they just don’t come through.”
Chinese Foreign Ministry spokesperson Hua Chunying told reporters that the U.S. is flip-flopping on promises it made, not the other way around.
“It doesn’t make any sense for the U.S. to exercise its campaign of maximum pressure at this time,” he said, according to Reuters. “It’s pointless to tell others to take medication when you’re the one who is sick.”
Meanwhile, the trade war between the countries rages on.
Government data released Monday showed inspections of beans for delivery to China rose to about 600,000 metric tons, the highest in five months.
Still, inspections of U.S. soybeans for overseas delivery since the start of the marketing year on September 1 are now at 40.3 million metric tons, well below the 52.5 million tons examined during the same period last year.
3. Heat Advisory in Effect in Oklahoma as Temperatures Top 105˚F., Storms Expected in Iowa
A heat advisory is in effect for parts of Oklahoma today as the heat index is expected to top 105˚F. this afternoon, according to the National Weather Service.
Outdoor activity is not recommended with temperatures in the triple digits, the NWS said.
Temperatures in central and southern Kansas also are expected to hit about 105˚F., as well, though some isolated showers are forecast. Some of the storms could produce strong wind gusts, the agency said.
Farther north in Iowa, meanwhile, some storms are expected today and tonight that could produce hail and gusty winds, along with locally heavy rain.
“Showers and storms are expected to redevelop this evening, a few of which could become strong,” the NWS said in a report early this morning. “Flash flooding is also possible.”
The chance of thunderstorms continues into tomorrow and Friday.