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DTN Closing Grain Comments 02/04 13:47
Soybean Futures Erupt Following President Trump's Positive Trade, China
Remarks
What began as a fairly mundane session at midweek quickly became volatile
following a midmorning social media post from President Trump, stating he had
spoken with China's President Xi and hailed the conversation and general
relationship with China as great, while pointing to increased soybean trade as
a result. This obviously tripped headline driven algorithms to go on a buying
spree across all soybean product markets, while providing positive influence on
corn and wheat markets as well, though the latter would not sustain a move
higher. Outside markets were mixed with higher energy markets which gained
steam through the session on heightened tensions between the U.S. and Iran.
Negotiations between the nations had originally been scheduled for Friday in
Turkey and were reportedly canceled in favor of a smaller meeting in Oman, with
that meeting now looking doubtful as well. The U.S. dollar was firmer again
adding a headwind to the wheat market, while equities were generally mixed.
Rhett Montgomery
DTN Lead Analyst
GENERAL COMMENTS:
March corn closed up 1 cent and May corn was up 1 1/4 cents. March soybeans
closed up 26 1/2 cents and May soybeans were up 27 1/2 cents. March KC wheat
closed down 4 1/2 cents, March Chicago wheat was down 2 cents, March MIAX
Minneapolis wheat was down 2 1/4 cents.
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