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3 Big Things Today, November 13

Soybean Futures Higher Overnight; Optimism Over China Talks Abounds After Phone Call.

1. Soybeans Higher Overnight on China Optimism

Soybeans were higher, as investors focus on cooling of trade tensions between the U.S. and China.

The two sides are reportedly ready to kick off negotiations that hopefully will end an ongoing trade war between the countries. Trade tensions have cooled this month, as the sides seem ready to find common ground and end the months-long trade dispute.

Successful trade negotiations would likely improve demand for U.S. soybeans. Sales of the oilseeds have slowed considerably since the start of the marketing year on September 1 compared with year-ago levels after China stopped buying.

Traders are also keeping an eye on the harvest. The USDA will release its Crop Progress Report a day later than normal due to Veteran’s Day observances. The government also will release its Export Inspections Report today.

Analysts are expecting the agency to report the soybean crop 90% harvested, up from 83% last week, corn 88% collected vs. 76% seven days earlier and winter wheat planting at 90% finished, up from 83% a week earlier, according to Allendale.

Soybeans for January delivery rose 5¢ to $8.88¼ a bushel overnight on the Chicago Board of Trade. Soy meal futures gained $1.70 to $307.30 a short ton, and soy oil lost 0.10¢ to 27.61¢ a pound.

Corn futures for December delivery fell 1½¢ to $3.69¾ a bushel overnight.

Wheat for December delivery lost 4¢ to $5.15¾ a bushel, while Kansas City futures declined 4¼¢ to $4.89¼ a bushel.

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2. Optimism Shines on Future Trade Deal After U.S., China Officials Reportedly Talk

There’s optimism about a future trade deal between the U.S. and China after leaders from the countries reportedly talked.

Treasury Secretary Steven Mnuchin and Vice Premier Liu He had a phone conversation Friday to discuss a potential trade deal, The Wall Street Journal reported.

While no agreement was made, the discussions are an improvement over the silence between the world’s largest economies, as seen in the past.

The U.S. and China each have tens of billions of dollars in tariffs on each other’s imports, including agricultural products.

 Talks were nonexistent while the U.S. hammered out deals with Mexico and Canada, and it seemed as if the stalemate would drag on for the foreseeable future despite both sides insisting they wanted a trade deal.

U.S. President Trump and China President Xi Jinping then spoke on November 1, after which Trump said that the two had a “long and very good conversation” in a tweet.

“We talked about many subjects, with a heavy emphasis on Trade,” he said in his tweet at the start of the month. “Those discussions are moving along nicely with meetings being scheduled at the G20 in Argentina.”

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3. Snow Expected in Parts of Southern Illinois, Indiana, Mixing With Freezing Rain

Light snow is expected in parts of southern Illinois, southern Indiana, and southeastern Missouri on Tuesday, according to the National Weather Service.

The precipitation is expected to spread north through Wednesday, mixing with freezing rain at times into Thursday morning, the NWS said in a report early this morning.

“Some snow and light ice accumulations are expected, which will likely cause travel impacts,” the agency said. “Precipitation will transition to rain across most of the region by Thursday afternoon.”

In parts of eastern Iowa and western Illinois, meanwhile, wind chill readings are in the single digits to around zero this morning.

Snow is also possible in Texas, where flurries or sleet are possible across the central part of the state. High temperatures will be in the 30s and low 40s during the afternoon.

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