NORMAL – There was finally some positive news for the markets in recent days with President Trump and China basically “agreeing to agree,” according to one market analyst.
“The Tweets did say that China will buy a substantial amount of U.S. ag products,” said Curt Kimmel with Bates Commodities this week. “The concern from a producer point of view is that the Southern Hemisphere is coming online fairly quickly here so we need to see some action right away.”
According to Kimmel, we could see an additional 180 million bushels of beans being sold to China in the near term which would be great for producers. The recent positive news pushed markets higher at the open Sunday evening and many wonder if the trend can hold through year end, which is typically a time when prices increase.
“Once a person puts the crop in the bin, what pays minimum storage is hard to shake it loose,” Kimmel added.
After the calendar turns to January, we typically see cash grain movement due to cash flow needs and another round of storage kicking in. Kimmel believes optimism will be around for the next few weeks before the focus turns to the southern part of the world.