Commodity Comments: 


It appears that our President's Twitter account was active yesterday. 

Yesterday, President Trump tweeted:

"For 10 months, China has been paying Tariffs to the USA of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods.  These payments are partially responible for our great economic results.  The 10% will to up to 25% on Friday.  325 Billion Dollars of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%.  The Tariff's paid to the USA have had little impact on product cost, mostly borne by China.  The Trade Deal with China continues, but too slowly as they attempt to renegotiate. No!"

The market definitely didn't take it as bullishg or neautral news, especially after the talks the last couple of weeks.  The market expected a deal to come in early June.   The Chinese government has reportedly blocked Trump's Tweets from being seen, so Chinese citizens may have been searching for an answer to the down market day.  

Corn - Dipping down to make new lows on the March, trading at 15 cent lower at one point, no market was safe from the weekend tweet.  The market did come back to erase about half of their loss.  Is the market seeing this as a ploy?  Is the market getting worried about planting delays on top of the tweet?  Corn planting is sitting at 23% versus the 5 year average of 46%.  

Soys -  Soybeans reacted the same as corn.   Beans were down as much as 25 at the low, but closed the day down 13.   

Wheat - Same story as corn and beans.  Trump's Tweet followed by planting delays fueled the market lower today.  Planting delays that are borderline leading to less wheat acres.  Crop conditions are unchanged from last week at 64% Good/Excellent.

The May WASDE will be released on Friday.  

If you ever have any questions regarding the different types of contracts that JVG offers, please give us a call.  We have cash, futures fixed, Minimum Price, and Basis Fixed available.  Also, if you hear of different kinds of contracts that you may be interested, let us know.   

As always, Thank You for your business! 

Stay safe this Spring season!


Tiffany Heier