By mid-March 2018, rhetoric regarding trade relations between the United States and China began to heat up. President Trump started this earlier in the year with an announcement of steel and aluminum tariffs. Later he focused more on China and Chinese officials responded in kind. The heated-up rhetoric seemed to be capable of starting a serious trade war in which each country would boost tariffs that would raise the cost of the other nation’s exported products.
December corn futures finished Friday’s session up 5-½ cents, trading in a 10-¼ cent range, trimming losses for the week to 6-¼ cents. Friday’s Commitment of Traders report showed managed money sold 33,313 futures from June 19 to June 26, expanding their net short position to 90,764.
Quant Cycles (formerly called the Cycle Projection Oscillator) is a technical tool that employs proprietary statistical techniques and complex algorithms to filter multiple cycles from historical data, combines them to obtain cyclical information from price data and then gives a graphical representation of their productive behavior. Other proprietary frequency domain techniques then are employed to obtain the cycles embedded in the price.
Export inspections Thursday morning in corn came in at 1,511,746 metric tons, a strong number that offered little support to the market. Attention this week will be on weather and Friday’s USDA report which will give us an updated look at quarterly stocks and planted acres.
CME Group, a diverse derivatives marketplace, today announced the launch of options on its Black Sea Wheat FOB and Black Sea Corn FOB financially settled futures contracts, to begin trading on July 16, 2018, pending all relevant regulatory review periods.
July soybean futures finished Friday’s session up 5-¼ cents which put them up 44 ¼ cents for the week. Thanks to the big gap higher last Monday, futures traded in just a 28-¼ cent range. Friday’sCommitment of Traders report showed that managed money sold 6,276 futures from May 15th-May 22nd; this puts their net long position at 94,796 futures.
Soybeans have traded as much as 58 cents off of Friday’s lows in the early morning session. There has been renewed hope on the trade side of things, not just that China wouldn’t disappear but perhaps even start buying more agricultural products from the United States.