Good Morning!

Mixed markets today with wheat finding mild pressure while corn is fractionally lower and beans are a touch higher. Equities are sharply lower following sizeable losses yesterday. The financial markets are reacting to news that Trump is “not satisfied with US/China trade talks”. There are rumors that Sinograin is price shopping US beans and thoughts Chinese buyers could make large US bean purchases once a deal has been struck.

Heavy rainfall of 2-4” is moving across north-central Iowa this morning, delaying once more the last 20% of corn plantings for the region. The weather outlook has light to moderate rains for most of Iowa, Minnesota, and western Wisconsin for the second half of the week and weekend. These rains will move into the rest of the Midwest Saturday and Sunday.

Brazil's government and congressional leaders have reached a deal to use tax policy to reduce fuel prices. Government officials agreed to cut the CIDE tax from 40% to 10% and use additional payroll tax revenues to help bring down pump prices that have surged nearly 50 percent in less than a year. The Brazilian truckers strike is becoming more concerning and is hampering the transport of commodities.

The average trade estimate for Friday’s Cattle on Feed Report has the number of cattle on feed as of May 1st at 104.9% of a year ago. Placements in April are pegged at 91.1% and marketed in April are estimated at 106.0% of a year ago.

Argentine grains ports will be paralyzed by a 24-hour strike on Thursday to demand better working conditions and protest against government talks with the International Monetary Fund. The government has asked the IMF for a standby finance agreement that the opposition fears will include onerous fiscal belt-tightening conditions.

OPEC may decide to raise oil output as soon as June due to worries over Iranian and Venezuelan supply and after Washington raised concerns the oil rally was going too far. Gulf OPEC countries are leading the initial talks on when the exporting group can boost oil production to cool the oil market after crude rose above $80 a barrel last week, and how many barrels each member can add.

Have a great day and be safe out there!