3 Big Things Today, February 25
1. Bullish News for Soybean Market
The announcement that progress has been made in the U.S.-China trade negotiations (see more below) was welcomed by the grain markets. Soybeans climbed 1% on Monday, hitting their high for the last two weeks.
May soybeans rose 10¢ to $9.33 a bushel overnight. May corn also rose, adding 2¢ to $3.87 a bushel in Chicago.
2. Progress on U.S.-China Trade Negotiations
After a months-long trade war, it appears that U.S. and China are making progress in trade talks and are close to a deal. On Friday, the news came out that China agreed to buy up to $1.2 trillion in U.S. goods, followed by an announcement from Secretary of Ag Sonny Perdue that China committed to buy an extra 10 million metric tons of soybeans. Soybean sales to China are down significantly – only 7.4 million tonnes of the most recent harvest has been sold to China compared with 26 million from this time last year.
The good news continued over the weekend with President Donald Trump on Sunday saying he would delay the tariff hike on Chinese goods, scheduled to hit on March 1. The delay is due to “productive” trade talks, says Trump, and that if progress continues, Trump and Chinese President Xi Jinping will meet to complete the deal.
"I will be delaying the U.S. increase in tariffs now scheduled for March 1. Assuming both sides make additional progress, we will be planning a Summit for President Xi and myself, at Mar-a-Lago, to conclude an agreement. A very good weekend for U.S. & China!" Trump said in a tweet.
3. Bitter Cold Sets In
The low pressure system that has been moving across the U.S. leaves today. In its place, a high pressure system is settling into the Northern Plains, bringing bitterly cold temperatures.
On Monday and Tuesday, temperatures will be 40˚ below normal in the Northern Plains. In the Central Plains and Upper Midwest, temperatures will be 20˚ to 40˚ below average. Watch for both wind chill advisories and warnings.
The Northern and Central Plains will have another round of snow Monday night. A light snow (1 to 4 inches) will move across the Plains to the Upper Midwest and Upper Great Lakes.