Written Commentary
OPENING COMMENTS
GEOPOLITICS:
China will “fight to the end” against the proposed 104% tariffs that hang in the balance. Will the “end” be today? next week? Next year? China is willing to lower interest rates and lower cash reserve requirements for lenders. They also mentioned there is room to expand the states fiscal deficit. Meanwhile, 70 countries have approached the White house to initiate talks on tariffs. US treasury Secretary Scott Bessent and US Trade Rep Jamieson Greer are set to meet with Japanese officials to negotiate the 24% tariffs they are subject to. Bessent seemed optimistic of a deal in an interview late yesterday. In other news, Ukraine’s President Zelenskyy made a statement overnight that his forces fought against at least 6 Chinese soldiers and took two prisoner. He expects a reaction from the US on this matter.
AG FUNDAMENTALS:
The USDA will release their April World Agricultural Supply and Demand Report at 11:00am CST on Thursday April 10th. Corn ending stocks could see a slight pull back due to solid exports and better than expected ethanol usage. Feed and residual could rain on the corn bull parade with some estimates suggesting the corn ending stocks should be increased due to less corn feed demand. Argentina is expecting a slight dip in their soybean production due to hot/dry weather in the last couple months, but question is will the Brazilian crop make up for the loss in Argentina? Estimates and ranges can be seen below.
April 10th USDA WASDE Report Estimates
Export & World News
South Korea is looking to buy up to 60K MT of animal feed wheat. Syria is putting feelers out there to purchase up to 100K MT of milling wheat in an international tender.
Daily Trading Limits: Corn $0.30 (expanded $0.45); Soybeans $0.85 (expanded $1.30); Minneapolis Wheat $0.60 (expanded $0.90); KC Wheat $0.40 (expanded $0.60); Chicago Wheat $0.40 (expanded $0.60)
Weather Outlook
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