A mix of grain trade this Tuesday, noon hour, as wheat and corn continue a second day of correcting last week's strong, spectacular advance, while the soybean market continues to advance. And today, soybeans trading up over six cents on the session, if they can close up just seven cents on the day, that's a new high close for the calendar year, but still 20 cents away from the best price we experienced last November, when the soybean market went on, that first rally on Chinese buying rumors. Again, the trade today is trying to bemoan the prospect that China will buy beans because of the same old story, we're $1 premium to South American beans. Which Chinese did it before? We don't have a signed trade agreement. Which the Chinese did it before, and the fact that President Trump is increasing the tariffs via section 302, which they've done that before. But China is outside of this tariff threat because they're still in negotiations. The positive is that President Trump is heading to China at the end of this month and possibly can work out some better relations with the Chinese on trade, the Chinese want our soybeans, not because they're better value, but because they get access to us chips for computer making. They want that. And there's a thought that President Trump may say something tonight in the state of a union address that might be friendly towards soybeans and or soybean oil, which again, is higher today. Meanwhile, wheat and corn, they're just correcting last week's advance, but no technical damage being seen to stop what is now a new starting uptrend in the wheat and corn trade.
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