Good Morning!

The grain markets are mixed this morning as the sell-off appears to be over until more is known about the on-going trade disputes as well as weather conditions into the month of July. US/China trade relations may have taken another step backwards as China’s Commerce Ministry spokesman suggested Trump is using bullying tactics and blackmail to impose trade wars around the world.

The weather outlook for the US Midwest had no major changes as soaking rains slowly push through the region this week with a break over the weekend before rains returning next week. The longer range outlook suggests a high pressure ridge moves over the central US during the first week of July, producing a much warmer and drier trend.

U.S. renewable fuel credits rose 5 cents on Wednesday, hitting 28 cents following a report that the Environmental Protection Agency may reallocate exempt ethanol gallons under its waiver program to other refiners.

India raised tariffs on a slew of items in retaliation after the US imposed higher levies on some products shipped from the country, echoing steps taken by China, the European Union and other trading partners. India said the duty imposed by the US has affected steel exports by $198.6 million and aluminum shipments by $42.4 million.

OPEC leaders Saudi Arabia and Russia are trying to convince fellow oil producers to raise output to meet rising global demand, with Iran still signaling it would support only a modest increase in supply. OPEC members will meet on Friday to decide output policy amid calls from the US, China and India to increase production.

CME Group announced this week that it reached an all-time daily open interest record of 10,054,696 agricultural futures and options contracts on June 19, 2018. The previous record of 10,042,694 contracts was set on June 15, 2018.

Be safe and enjoy the day!