While the stock market and cattle markets, along with any market you want to talk about, are sharply lower. Today, the grain trade is moving sharply higher. Wheat and soybeans seeing double digit gains well over 10 to 12 cents on the session. And for soybeans, that's on top of multiple days higher. We are now well above last week's highs by about 30 cents as the soybean market continues to advance. Yesterday afternoon, we got news that President Trump and President Xi have agreed to a one year truce on the tariff situation, and that has excited the market that China will likely follow through picking up the 8 million metric tons of soybeans that were announced likely by President Trump, that China would be pursuing in the near term. Now, the course the negative talk on this, the bearish talk, is that, well, China won't do it because soybeans are $1 higher here versus Brazil. Well, here's the catch. They've already did it. They did that with the 12 million metric tons last November and December. And as far as China is concerned, to pay an extra $293 million on 290 3 million bushels of soybeans. That's what, 8 million metric tons comes to they save irritating President Trump, who would throw $90 billion worth of tariffs back on that he did last year in April. So, this is not about economics. It's about strategy. And so, the soybean markets are leading the grain advance today, with the wheat trade also now recovering to its best levels in the four months. In the meantime, corn struggles, but it's hanging near the 430 mark as everybody's worried about the rolling of hedge to arrive contracts that will occur at the end of this month. For more information, go to HeartlandInvest.com.
*This is not trading advice; past results are not indicative of future results*
