3 Big Things Today, February 26
1. Soybeans, Wheat Drop Overnight
Over the weekend, President Donald Trump announced that there has been significant progress in the U.S.-China trade negotiations. While this should be bullish news for soybeans, the market hasn’t been overly impressed.
On Monday, the grain markets closed mixed with corn down 4¢, wheat down 19¢, and soybeans up 1¢.
“None of these markets is really all that impressive in response to the tariff being pushed back. People complain that there is no time line put on any of this, and we also know that the hardest issues – intellectual property protections and Chinese economic reforms – are still to be negotiated,” says Jack Scoville, PriceGroup senior market analyst.
May soybeans dropped 4¢ to $9.21 a bushel overnight. May corn is unchanged at $3.80. Wheat is down 1¢ across the boards, including the CBOT, Minneapolis, and KC wheat futures.
2. Pushback Against Trade Deal Eagerness
Trump’s move to delay increasing tariffs on Chinese goods is getting mixed reactions. Some industry groups and lawmakers are concerned that the deal won’t address the key issues that led to the trade war, specifically protecting intellectual property and changing China’s trade practices.
Secretary of Ag Sonny Perdue addressed this on Monday in a speech in Washington, D.C.
“Still, the structural core issues of intellectual property transfer have to be dealt with," he said. “We will not be bought off as a country over purchases without eliminating some of these nontrade barriers in China.”
In that same speech, Perdue also clarified when the Chinese would complete the 10-million-tonne soybean purchase promised last week. “That is near term,” he said. “The impression I had, it is imminent.”
3. Another Bitterly Cold Day Across Midwest
Temperatures throughout the Midwest will remain colder than average on Tuesday. In the Northern and Central Plains, temperatures will be 20˚ to 40˚ below average. Montana will be particularly chilly with temps dropping more than 40˚ below average. Due to this, wind chill advisories are in effect in portions of the Upper Midwest.
These cold temperatures will move south, as a cold front sweeps through to the Southern Plains.
Forecasts show snow for the Northern Plains Tuesday with the system moving into the Upper Midwest Tuesday night and Northeast on Wednesday. Snowfall amounts will range from 4 to 6 inches.