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Grains were lower overnight before rebounding during the days session (Key reversals seen for corn, bean and wheat futures) as the U.S. reached an agreement with Mexico, which resulted in the tariffs being paused temporarily. Mexico offered to send 10,000 national guard troops to the border to help secure it, while continuing conversations on other items of concern.
In our case, speaking between calls with Prime Minister Justin Trudeau, U.S. President Donald Trump said their first talk was “good” but that he still thinks Americans are “not treated well by Canada.” Trump confirmed he spoke to Trudeau and would “be speaking to him again at 3:00 P.M. I am less optimistic of an agreement between Canada and U.S. before the tariffs come into play tomorrow. Canada seems to be playing hardball, producing a list of items they plan to tariff in retaliation of the U.S. if an agreement is not reached. I believe the results of this call (whether an agreement is reached or not), will be indicative of price direction tomorrow.
This afternoon's December USDA total soybean crush is expected to come in at a record 217.6 million bushels, up from 210.0 mbu in November and 204.3 mbu last December. Trade estimates range from 214.0-223.0 mln bu.
Funds were thought to have been all buyers. Corn's long position keeps getting longer.
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