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3 Big Things Today, January 9
1. Soybeans Rise on Brazil Weather, Trade Optimism
Soybeans were modestly higher in overnight trading on continued dry weather in parts of Brazil and ongoing optimism about trade negotiations between the U.S. and China.
Dry weather is expected in central and northeastern parts of Brazil through this week, which will allow stress to expand in the region, Radiant Solutions’ meteorologist Don Keeney said in a report. Still, rains are expected in some areas including Mato Grosso, southern Parana, Santa Catarina, and Rio Grande do Sul, the forecaster said.
Negotiations between the U.S. and China wrapped up after two days on a positive note, with both sides saying they believe a deal can be worked out.
President Trump tweeted that talks with China “are going very well” and a China state-run newspaper said leaders in the Asian country were eager to end the ongoing trade dispute.
The White House has set a deadline of March 1 for a new agreement to be put in place, or it will raise its tariff on $200 billion worth of Chinese goods to 25% from their current level of 10%. If that happens, it’s likely China would retaliate.
Soybeans for March delivery rose 2¼¢ to $9.20¾ a bushel overnight on the Chicago Board of Trade. Soy meal gained 20¢ to $321.80 a short ton, and soy oil added 0.16¢ to 28.59¢ a pound.
Corn gained 2½¢ to $3.82½ a bushel overnight.
Wheat rose 4¢ to $5.21¾ a bushel, while Kansas City futures added 4¢ to $5.09 a bushel overnight.
2. Producers to Have Another Soybean Option With Approval of Enlist Soybeans
U.S. producers will have another option when planting after China approved Enlist E3 soybeans, which resist three separate herbicides, from DowDuPont’s Corteva Agriscience.
The soybeans are designed to resist glyphosate, glufosinate, and 2,4D.
A spokesman for Corteva said the company is “pleased” with China’s approval of the product, and management looks forward to receiving the official safety certificates.
The company had originally been hesitant to widely release its Enlist soybeans because they hadn’t yet been approved by China. Growers now will have the option of planting the soybeans and not having to worry about whether they’ll be approved.
China’s approval of Enlist likely will lead to widespread use of the product.
Michael Underhill, the chief investment officer for fund manager Capital Innovations, told Reuters he’s reminded of the song “When The Levee Breaks” by Led Zeppelin.
“Competition is going to get fierce,” he said. “It forces everyone to get sharp and up their game.”
3. Cold Weather Hits Illinois, Lake-Effect Snow Forecast For Parts of Michigan
Cold weather is hitting parts of Illinois and Indiana this morning with temperatures in the single digits in some areas, according to the National Weather Service.
The cool weather precedes a storm system that’s forecast to bring snow to the area late Friday into the weekend, the NWS said in a report early this morning. While the agency said it’s still too early to know specifics, “there is potential for a few inches of snow to accumulate.”
Farther north, in Michigan, lake-effect snow showers will produce accumulations through tonight, the NWS said.
“These accumulations will lead to some slick spots on the area roads,” the agency said.
Because of the lake-effect snow, the NWS has issued a winter weather advisory for counties along Lake Michigan where winds will gust as high as 35 mph and snowfall of up to 3 inches is expected.