May corn down 1 ¼ at $3.7225
May beans up ½ at $9.1725
The DOW is down
USD is weaker
Crude oil down $.05 at $56.89
Corn traders are digesting mixed rhetoric from Washington. At first, Ag Secretary Sonny Perdue told the House Agriculture Committee that the EPA probably wouldn’t have rules ready for E15 by the summer driving season. Later in the day however, both the EPA and Ag Secretary Perdue said the needed documents to make E15 happen could be completed before the summer driving season, which would be a nice windfall for the ethanol industry. At the same time, U.S. trade chief Robert Lighthizer was sending a more mixed signal about a Chinese trade compromise. Insinuating that there’s still a lot of work to be done. Lighthizer also stoked a few flames by warning that the broader U.S. trade agenda would be dead if Congress fails to pass the new U.S.-Mexico-Canada Agreement, which will take the place of NAFTA. Technically, the corn market has sustained some significant nearby damage. The recent low set this week in the MAY19 contract is the lowest we’ve seen this contract trade since September 21st. Keep in mind, we’re not all that far from the contract low of $3.63^2.
Soybean traders continue to focus on headlines surrounding Chinese trade negotiations. In testimony yesterday, top trade advisor Robert Lighthizer made the trade a bit nervous by saying it’s still unclear whether the Chinese will meet U.S. demands — but that the issues were “too serious” to simply accept Chinese promises to purchase more US agricultural products and call it a win. Lighthizer further commented, “Don’t go for the soybean solution. This is our one chance”.
The House on Tuesday cleared legislation to permanently reauthorize the Land and Water Conservation Fund, as part of the first major public lands package in a decade. The measure now heads to President Trump’s desk. The Land and Water Conservation Fund is a historically bipartisan program that has funded projects in all 50 states since its inception in 1965, expired on September 30, 2018. The program supported everything from the expansion and maintenance of local parks and recreation center to national forests, national parks and historical sites. (Source: The Missoulian)
China Plans Major Overhaul Of Hog Industry Due to Swine Fever: Beijing officials have reported more than 100 outbreaks of the disease, which is fatal to pigs but not harmful to people, in 28 provinces and regions since last August, causing turmoil in the $1 trillion industry and related sectors. China’s Ag Ministry drew up the plan to ease the trade of pigs and pork within the regions, after earlier measures distorted prices and the market. China plans to divide its hog industry into five zones to try and halt the spread of African swine fever across the country. I’m hearing that despite banning the movement of pigs out of infect provinces, the disease continues to spread rapidly with three new provinces reporting outbreaks over the last week. (Source: Reuters)
A judge in Mexico has ruled against a 2017 measure that allows higher ethanol levels in gasoline. Mexico raised its cap on ethanol in gasoline to 10% from 5.8% in 2017, even as environmentalists warned that the action would exacerbate pollution. The measure, made gasoline imported and sold in Mexico similar to gasoline in the U.S., excluded several of the country’s densest regions. This could hurt U.S. ethanol producers who have shown growing interest in exporting to Mexico in search of new markets. (Source: Reuters)