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3 Big Things Today, November 6, 2019
1. Soybeans, Corn Modestly Higher in Overnight Trading
Soybeans and corn were only slightly higher in overnight trading, as investors weigh optimism about a trade deal with China against harvest pressure.
The U.S. and China are reportedly moving toward a phase one agreement with some details that still need to be worked out. Finding a suitable place to sign the “partial” pact is one of the details that are yet uncertain.
Reuters reported that the prospect of such a ceremony has residents of Muscatine, Iowa, excited, as Chinese President Xi Jinping has already visited twice, the last time in 2012.
Prices, however, are being capped as the soybean and corn harvests roll on. Three fourths of U.S. soybeans were harvested as of Sunday, up from 62% the previous week, but still behind the prior five-year average of 87%.
Only 52% of corn was collected by the start of the week, well behind the average of 75% for this time of year, but still up from 41% seven days earlier.
Soybean futures for November delivery rose 1¼¢ to $9.35½ a bushel overnight on the Chicago Board of Trade. Soy meal fell 10¢ to $302.60 a short ton, while soybean oil added 0.21¢ to 31.78¢ a pound.
Corn futures for December delivery rose 2¼¢ to $3.84 a bushel.
Wheat for September delivery gained 1½¢ to $5.16¾ a bushel, while Kansas City futures added 1½¢ to $4.30 a bushel.
2. U.S., China So Close to Trade Agreement, Iowa Mentioned as Location For Signing Ceremony
The U.S. and China are so close to signing at least a “partial” trade deal that they’re now seeking a place to sign an accord after the APEC meeting scheduled for this month in Chile was canceled by the would-be host country after too many protests.
President Donald Trump and President Xi Jinping have indicated they’re willing to sign an agreement, and it looks like any signing ceremony will take place in the U.S.
Several locations have been mentioned, including Iowa, which would be a good move both optically and politically. Regardless of where, farmers just want a deal to be signed.
Any so-called phase one agreement likely would include the U.S. dropping tariffs it had imposed and wanted to impose in exchange for China implementing rules against manipulating its currency, intellectual-property protections, and, of course, promised to buy more agricultural products.
China said yesterday that the presidents have been talking, and progress is being made. The U.S. also may cut 15% tariffs on more than $100 billion worth of Chinese goods imposed on September 1, the Financial Times reported.
The U.S. trade deficit, meanwhile, declined almost 5% to $52.5 billion in September, the Commerce Department said in a report Tuesday. That’s the smallest deficit since April.
The deficit with China declined slightly to $31.6 billion, the department said.
3. Cold Front Heading Into Southern Plains to Bring Strong Winds, Freezing Drizzle
A cold front pushing into the Southern Plains will bring cold weather, strong winds, and freezing drizzle to the region, according to the National Weather Service.
The front will push across western Kansas this evening, bringing winds of up to 35 mph and freezing rain, which likely will end by daybreak tomorrow, the NWS said in a report early this morning.
Thunderstorms are likely in the Oklahoma and Texas Panhandles, though they won’t be severe. A wintry mix of snow and rain also is possible late tonight in the area.
Snowfall accumulations will stay below an inch, the agency said.
Farther north, a winter weather advisory is in effect for parts of southern Minnesota and southern Wisconsin, as snow continues to fall in the area.
“Snowfall intensity is expected to increase from about 3 a.m. local time through daybreak, with snowfall rates around an inch per hour possible,” the NWS said. “Snow will begin to taper off from west to east around daybreak, a trend which will continue through the remainder of the morning.”
Up to 3 inches of additional snowfall were expected overnight.