Corn futures are under pressure at midday following the weekend tariff threats regarding Colombia, the third largest importer of U.S. corn.
Potential 25% tariffs on both Canada and Mexico are expected to go in place this Saturday February 1. Canada is the largest importer of U.S. ethanol while Mexico is the largest importer of U.S. corn.
Crude oil futures are lower at midday and back below the $75 mark. This morning’s weakness comes after shedding over $2.70 cents per barrel last week. Weaker crude oil is likely weighing on the entire commodity complex.
Soybean futures are lower at midday Monday as traders continue to digest Argentina’s export tax reduction announcement from late last week.
Spotty rainfall over the weekend in Argentina will be followed by another chance for showers early this week before warmer temperatures and a drier pattern set in as the calendar flips to February.
A drier weather window allowing for soybean harvest in northern Brazil may close late this week into early next week as a wetter pattern re-establishes itself. This could add quality issues, some of which have already been reported.
China starts their Lunar New Year holiday this week which will last for 10 days. Historically soybean sales to China during this holiday period are little to none.
Wheat markets are following corn and soybean markets lower at midday.
Moisture in both snow and rainfall form are forecast to fall over a significant portion of U.S. winter wheat producing regions in the plains over the next seven days. This will help to improve soil moisture conditions as we head towards spring green up.
The Black Sea region will remain drier over the next 10-days along with warmer than normal temperatures before trending colder next week.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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