Following a mundane start to the week, U.S benchmarks got a boost for Tuesday’s session early Monday night on comments from U.S Treasury Secretary Mnuchin that talks between him and Chinese Vice Premier Liu He would begin in two weeks.
November soybean futures broke down on Friday on fears that the U.S. and China trade talks broke down. It was reported that China canceled its U.S. farm visits, but new reporting suggests the cancellation came from the U.S. side.
U.S benchmarks are working off the worst levels of the session; a two-sided tape, one that ripped higher on the open due to positive jawboning from both the U.S and China on trade before bleak European Flash PMIs quickly eroded the better sentiment.
The Fed met expectations yesterday by cutting rates and although U.S benchmarks swung briefly in both directions, they are right where they were leading up to the policy decision. FOMC members poured cold water over the action by not forecasting additional cuts this year.
U.S benchmarks jumped to session highs on yesterday’s close and ahead of today’s big Fed decision. For the last two months, the Federal Reserve has been fully expected to cut rates with nearly a 100% probability.