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Analyst cautions against knee-jerk reactions to latest China twist
“Maybe shut your quotes off, and just look beyond (today).”
Al Kluis with Kluis Commodity Advisors says a new tweet from President Trump claiming the U.S. government will buy ag products from its own farmers in larger amounts than China ever did indicates negotiations aren’t going very well.
“A week ago we were optimistic a deal was being put together. China made a lot of requests to changes, and that’s what prompted tweets from President Trump Sunday night that have kept the grain and stock markets under pressure since then.”
For soybeans, he tells Brownfield there’s mounting downside risk until an agreement is put together.
“We’re bidding off the July contract right now. The May futures go off next week (with) May currently trading at about $8 dollars a bushel. So that becomes kind of the objective on my charts for the July futures. Before a market goes up, it has to quit going down. And right now it’s still trending lower.”
Trump tweeted this morning that the process has begun to place additional tariffs at 25 percent. But the President says negotiations with China will continue in hopes they do not again try to redo a deal.
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