3 Big Things Today, February 14
1. Soybeans, Grains Lower on Weather, Mexico Threat
Soybeans and grains were lower overnight on signs of favorable weather in competing exporting country and amid threats from a Mexican lawmaker who proposed a ban on U.S. corn imports.
Rains in parts of Argentina will likely boost crop production in the country, forecasters have said. Precipitation in parts of Brazil also may improve prospects. Rain is expected to ease dry conditions in southern Brazil, according to Commodity Weather Group.
A Mexican senator said on Sunday that the government should cease imports of U.S. corn in retaliation for new U.S. policies and proposed policies on immigration.
Soybean futures for March delivery fell 4¼¢ to $10.50 a bushel overnight on the Chicago Board of Trade. Soy meal declined $1.60 to $341.60 a short ton, and soy oil rose 0.07¢ to 34.24¢ a pound.
Corn futures declined 1¾¢ to $3.73¾ a bushel in Chicago.
Wheat futures for March delivery declined 3¾¢ to $4.48½ a bushel. Kansas City futures dropped 2¢ to $4.64¾ a bushel.
2. Mexican Senator Proposes Halting Imports of U.S. Corn Over Immigration Policies
A Mexican senator has proposed halting all imports of corn from the U.S. in retaliation for President Trump’s immigration policies and proposed tariff on goods from the country.
Senator Armando Rios Piter said he will present a proposal to the full Senate to stop purchases by Mexico, now the biggest buyer of U.S. corn. The country last year imported 13.6 million metric tons of the grain from the American farmers.
“We should stop collaborating with the United States, with this hostile administration specifically, regarding security issues, regarding antiterrorism that we've been working together (on) for the last years," Piter said, according to news reports.
President Trump last month proposed a 20% border tax on all goods imported from Mexico to pay for a wall along the border to stem illegal immigration. He has in the past proposed import taxes as high as 35% on Mexican goods. More recently, law enforcement officials have started rounding up illegal immigrants, or undocumented workers, in the U.S.
Piter said the Mexican government needs to consider sourcing not only corn but also several products including copper or appliances from other countries.
Success of any such legislation is unlikely, analysts have said, and is more political rhetoric than reality. Late last year, Piter proposed a bill that would allow Mexico to retaliate against then-President-elect Trump’s proposed policies by reviewing dozens of bilateral treaties with the U.S.
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3. Southern Plains to See Another Inch of Snow Today
The Southern Plains may see a little more snow today and tomorrow along with some rain and possible thunderstorms later this week.
“Some light snow or light snow mixed with rain can be expected across most portions of the combined Texas and Oklahoma panhandles this morning,” the National Weather Service said. “Any snowfall amounts will be light, generally less than 1 inch.”
Snowfall in parts of eastern New Mexico yesterday was expected to total up to 10 inches in higher elevations and 5 inches in lower areas, the NWS said.
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