Firm AM Comments 030320

 

China started accepting import licenses for 3% tariff imports from the US vs 33% previous tariff. It appears some US meal, soy, and corn can be added to the list of interest. No sales have been announced yet but we do not expect anything for about a week.

 

Arg weather remains dry. Not a crop threat yet but crop stress is just starting to set up. Another 2 weeks would spark concern.

 

Traders stepping in and buying undervalued food based commodities that have been pounded by fear based selling. Manufacturing commodities remain weak while food based commodities firm

 

Still no deliveries in corn suggest tighter supply scenario than USDA reports. Buyers using this break to protect against a worsening situation in July-August

 

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Bill Biedermann

AgMarket.Net

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