USDA lowered its soybean production forecast, which caused a rally. However, a social media post from the President earlier in the week also shook the market.
Darin Newsom with Barchart says he is not paying much attention to outside noise.
“For people in agriculture to believe that any U.S. President can ‘urge China to change its policy or its trade practice’ is beyond ridiculous, but yet that’s where we were. That’s where we were all Monday session, and now we’ll see what happens. I mean, will sanity return to the market? Probably not.”
Newsom says for him, it all comes down to fundamentals, something he says has not seen much change.
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ASA President Scott Metzger says soybean growers remain focused on trade, the Farm Bill, renewable fuels, and market stability as Congress weighs additional assistance for farmers and export opportunities.
Weekly USDA export inspections showed stronger wheat shipments, steady corn demand and continued buying interest from China and Mexico.
The situation will be closely watched as the harvest approaches and exporters prepare for heavier corn and soybean movement.
USDA says strong export demand and large grain supplies are increasing pressure on the nation’s transportation system.
