Corn up 3, beans up 9, wheat up 2
Crude Oil- 59.81 up .63
US Dollar- 97.22 down .17
DOW- 28,135 up 3
The markets are cautiously optimistic of the phase 1 trade deal. Something to consider, if there was a deal signed, and ink dried don’t you think we’d see the markets stronger than this? I do. I read this morning that the deal was done, phase 1 was wrapped up and done with, then this afternoon I hear, that no in fact the phase 1 deal isn’t to be signed until January which leaves plenty of time for either party to squash the deal. If the rioters in Hong Kong persist in their effort for democracy President Xi has made it known that the consequences of such behavior would be “crushed bodies and shattered bones” to which President Trump has been very clear in disagreeing with, he signed 2 bills opposing this type of reprimand from Xi, most thought that with Trump signing those bills it would put the squash on talks. Regardless… if the rioters and enforcement there would persist we could see things fall apart. The Chinses have made promises before only to be caught reneging on their agreement which we can all assume president Trump will absolutely not stand for. So, like I said the market is cautiously optimistic of this phase one deal and will likely respond a bit better once the deal is actually signed. There’s more political crap going on in the last two weeks than I care to spend time visiting about, BUT we do have a USMCA deal that’s been agreed upon, some of you might have been blessed enough to see ole Nancy make the announcement, (lucky you) honestly though, she needed some good press poor thing, she’s got Adam Schiff out there making a real mess out of her pigpen. OK, OK all jokes aside, Nadler helped. But seriously, what’s this USMCA deal mean for us? Well for starters this will allow for business to be done across borders, USMCA is expected to increase Agriculture exports by $2 billion dollars. The deal is intended to open markets for Dairy farmers as well as poultry producers. Wheat will be traded with Canada as well. Once the implementation legislation is sent to the hill, congress has 60 legislative days to approve it. SO, the deal is in the hands of Congress?! Scary. There are a few things in the works right now that could really make a difference for producers. I suppose if you wanted to write your congressman a love letter you sure could, let em know you’d like to see these things move forward.
I enjoy writing these comments each evening; I hope you all enjoy them as much as I enjoy putting my spin on things.
Have a good weekend!