Lack of China Deal Impacting GrainsPosted 03/07/2019 9:03AM CT |
No new reports on the U.S./China trade talk front, along with no confirmation of any new major purchases of United States farm products has left the soybeans without any positive news today. A tidbit of news that can be thought of as “positive”, is the U.S. confirming they are postponing the tariff increase on Chinese goods until further notice in a published statement by the federal register. China has ratcheted up pressure on Canada by restricting canola purchases, further straining bilateral relations. For the weekly export sales report, traders are looking for soybeans sales to come in near 650,000 to 1.2 million tonnes. Resistance comes in at 909 and 920 with 1 support coming in at 894 an 890.
Lack of news from U.S./China trade negotiations weighed on the market yesterday. That being said, United States weather may start to become an issue with winter conditions hanging around in the upper Midwest and plains longer than expected. There is 5-10 inches of snow expected to fall this week in North/South Dakota, Minnesota, Iowa and Wisconsin; all of which have ample snowfall coverage already. Similar wet years in the past saw corn prevent planted acres increase by 3.6 and 3.0 million respectively. Resistance is at 375 and 378, while first support hits at 369 and 367.
Soybeans May ’19 Daily Chart
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