Tariffs continue to impact the grain markets as we enter the second half of this calendar year. Ben Kasch is an account executive at Bower Trading and says that while U.S. trading partners continue to buy, they are watching carefully.
“You know, the funds remain short the corn and wheat market. You know, they’re kind of flat on the soybean side of things, but you know that they just haven’t had a willingness to go long. And I think, you know, looking at the tariff situation is has made them comfortable here being short. And you know, if you look at our export sales, it’s been very solid for corn. I think what you know still has impacted that is a lot of front-end loading from a lot of countries worried about the tariffs.”
Continued attractive pricing is keeping U.S. exports strong.
“Near contract lows. We, you know, we’re just $10 Novi beans. So, you know, for a new crop standpoint, that is, you know, price level, you’d like to see global buyers, you know, get some on the books there. And then, you know, on the wheat side of things, still kind of flirting with a bottom maybe here, getting pretty choppy down here at these levels, KC side of things, you know, we’re getting to that last leg of harvest. I think we’re at the 63% done. So, you know, that last bit, really, you know, goes pretty quickly, as long as weather cooperates.”
Kasch called last week’s WASDE report constructive to the market.
“Crop, carry out lower new crop carry out lower global ending stocks. So, you know, there is a possible story yet on corn here. And you know, I think what we’re seeing this week on this performance, you know, we made some new contract lows closed higher on Monday and we’re continuing the strength here into this Wednesday. Nice, you know, solid close recording beans a day, but, but yeah I think that the report to me was constructive.”