- U.S. adds 15% tariffs on variety of Chinese goods on Sept. 1
- China submits third tariff case to World Trade Organization (WTO) against U.S.
- Grain markets opened from the holiday weekend lower on U.S.-China disputes, along with warm weather forecast
- Corn conditions only increased 1% with soybeans stagnant at 55% good to excellent
U.S.- China Trade Updates
- The U.S. began imposing 15% tariffs on a variety of Chinese goods on Sept. 1, escalating the ongoing trade war. China reacted to the recent tariffs by putting in its third tariff case at the World Trade Organization (WTO) against the U.S. The international organization limits the tariffs each country can charge.
- Oil prices settled lower before the holiday weekend, as China prepared to retaliate against Washington’s recent tariff hike by imposing a 5% tariff on U.S. crude oil imports.
- U.S. markets were closed on Monday for Labor Day. Tuesday opened the grain markets lower with Beijing stalling on a date for their September trade talk with the U.S., along with extended weather forecasts not reflecting any cold temperature threats.
- Reuters reports an oversupply of global wheat caused U.S. wheat futures to fall on Tuesday, pushing prices towards their lowest in almost four months. Soybeans and corn also both dropped as the U.S.- China trade war escalated.
- Farm Futures surveyed over 1,100 U.S. farmers regarding their plans for the 2020 planting cycle; they heard that bean plantings are likely to rise 9% to 83.6 million acres, while corn is expected to increase 4.5% to 94.1 million.
- Corn condition increased 1% to 58% good to excellent (GTE) vs. 67% GTE last year
- Corn denting is up to 41%, yet still behind the five-year average of 63%
- Soybean condition stayed stagnant at 55% GTE vs. 66% GTE last year
- Soybean blooming is at 96% vs. 100% five-year average
- Soybean setting pods averaged at 86% vs. the 96% five-year average.
- The worst delays for pod setting are still seen in Indiana (76%), Michigan (78%), and Missouri (74%).
- Showers this week should be mostly limited to the northern plains and far northern Midwest. The headlining weather news has and will continue to be Hurricane Dorian. The storm continues to progress very slowly hugging the U.S. coast from Florida through the Carolinas. There could be significant negative impacts to crops in the southeastern region of the u-s between heavy rainfall and damage from straight-line winds.
DISCLAIMER: Commodity markets have inherent risk and Tyson Foods, Inc. assumes no liability for the use of any information contained herein. Information contained herein was obtained from sources believed to be reliable but is not guaranteed as to its accuracy. Any examples given are strictly hypothetical and no representation is being made that any person or entity will or is likely to achieve profits or losses similar to those examples. Neither the information, nor any opinion expressed, constitutes a solicitation to buy or sell futures or options on futures contracts. Every effort has been made to ensure the accuracy of the information and market data which is provided herein. Information has been obtained by Tyson Foods, Inc. from sources believed to be reliable. However, because of the possibility of human or mechanical error, Tyson does not guarantee the accuracy, adequacy of content or any information and is not responsible.