The Hueber Report

It was certainly not contained to just the grain and soybeans markets, but a couple of “maybes” appear to have excited bulls, or may better stated, panicked the bears yesterday.  The first “maybe” concerns the possibility of having a Federal Budget in place before the weekend.  President Trump has stated he is “not happy” with the agreement reached in Congress but neither did he say it was DOA when it hits his desk. Probably working in favor of this happening is the fact that nobody wants to be blamed for another shutdown of the government.  The other “maybe” concerns the U.S./Chinese trade negotiations and the rumors circulating seem to suggest that we could be nearing an agreement or at least they are positive enough to warrant extending the deadline beyond March 1st.  Realistically, I would have to classify all of this as “feel good” type news as even if both come to fruition, the elements already in play, such as the loss of business for the ag sector and the slowing of the global economy will not shift overnight.

Other commodity news is quite sparse this morning.  As of yet at least, I have not seen any reports of new export trade nor has there been anything fresh concerning South American crops. There has been an increase in rainfall in some of the drier regions of Brazil which could help later planted beans and is indeed welcome for the safrinha corn.  

 

Export sales will be released tomorrow morning and will at least bring us into the New Year.  Looking over at the macros, we have nothing more than a mixed bag this morning with energies slightly higher, metals mixed lower but both equities and the dollar higher.  Grain and soy markets are all somewhat defensive.