Good Morning!

The markets are mixed to lower as the bulls remain frustrated with the limited bean purchases made by the Chinese government. Ag futures on the Dalian were generally weaker with soybeans losing roughly 1%; veg oils and grains also weaker. For the week, CH is holding unchanged, SF is 12 lower and nearby Chicago wheat is 2 cents higher.

Well followed Informa is estimating 2019 corn acreage at 91.944 million acres versus 89.140 million a year ago. Soybean acreage is estimated at 85.069 million acres versus 89.145 million a year ago. 2019 Winter Wheat acreage is pegged at 32.253 mil acres versus 32.535 million a year ago.

Yesterday the US Ag Secretary said he expects the next tranche of farm aid payments will be made, despite China’s recent soybean purchase.

China has confirmed they will suspend additional tariffs on U.S.-made vehicles and auto parts for three months starting Jan. 1, 2019, the country's finance ministry said on Friday, following a truce in a trade war between the world's two largest economies. China will suspend 25 percent tariffs on 144 U.S. vehicle and auto part items and 5 percent tariffs on 67 auto items between Jan. 1 and March 31.

The weather outlook for South America remains mostly favorable as northern Brazil should see roughly 50% coverage over the next 10 days while southern Brazil and northern Argentina looks fairly wet over the next week. Southern Argentina looks to see a drier trend through much of next week.

Have a great weekend!