Morning Comments; Friday, February 15th, 2019

Grains are trading mixed on the overnight session.

China trade war struggles continue to plague the grain markets with a lack of enthusiasm. Bloomberg released news yesterday indicating the U.S. and China have made little progress reaching a deal on structural reforms to China’s economy. The U.S. is standing firm that China cuts back subsidies on state owned enterprises and has been a major hold up with Chinese negotiations. Both sides are working to avoid increases in tariffs slatted increase from 10% to 25% on March 1. Sources indicate the White House may agree to push back the tariff increases for 60 days to help further negotiations. The lack of progress could be signaling a meeting between the two presidents is needed to push negotiators to resolve the issues.

The National Oilseed Processors Association (NOPA) will issue their January soybean crush report today at 11 a.m. Crush is expected to be down just over 2 million bushels from December at 169.58 million. Soybean oil stocks are estimated to be 1.566 billion pounds. This would be up 4.5% from December, but down 10% from a year ago.

Market Movers: Chinese trade negotiations, acreage debate and export business.

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