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AgriVisor Morning MarketWatch

 
Friday, May 31, 2019
Market were pressured overnight from new tariff news surrounding the US and Mexico. The White House has announced it will impose a 5% tariff on all Mexican trade starting June 10th. This will reportedly increase 5% per month until Mexico takes satisfactory measures to control illegal border crossing. This news surprised many traders who had just become comfortable with the progress that had been made in the revised NAFTA trade policy. Weather also appears to be less threatening across the Corn Belt with windows of opportunity opening for planting to take place. Outside markets are sharply lower to start the day as safe-haven buying increases. Trade will focus on trade relation updates today along with weekend weather outlooks, export sales, and month end positioning. 

Highlights
• Global grain supply to shrink
• Gaps on charts
• Month end positioning
• US ethanol stock +6.4% on the year
• Financial markets down for 4 weeks
• Export sales data this morning
• EPA will reportedly change rules to allow year around use of E-15 

Corn
• Corn rally to slow demand
• Ethanol losing 15c/bu on production
• Constricting global stocks
• Estimates for a 4-5 million reduction to plantings

Soybeans
• Yield loss negated with more acres
• Supply/Demand still bearish
• Technicals providing support
• Weather not favorable for soybean planting

Wheat
• Global wheat production rising
• Drought to cut Australian crop
• Demand for feed wheat rising
• Quality more of an issue

Livestock
• Feeders claim corn rally adds 25cents/pound of production
• Waiting on Chinese business
• ASF continues to spread
• Worries over dairy export to Mexico
 

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