Cheap Argentine Soybean Exports This Week + “Safe Haven” Trade MomentumVideo: Cheap Argentine Soybean Exports This Week + “Safe Haven” Trade Momentum
Argentina suspended agro-export taxes early this week, from 26%, to increase their US dollar reserves. It lasted for 3 days by which time Argentina raised $7 bil.
This came at the wrong time as the US & China are working towards agreeing to a trade deal. Cheap soybean supply from Argentina works against that objective as China does not now need immediate US soybean supply. They reportedly scooped up 35 cargoes of Argentine soybeans. China's soybean reserves are said to be 6 MMT.
The US also reportedly has agreed to provide financial aid to Argentina.
US corn YTD export sales for 25/26 at record highs, with no Chinese business.
Drought in the US Midwest remains in place & near-term weather outlook remains dry, leading to a dry crop finish.
"Safe Haven" commodity trade momentum picks up as gold goes to record high territory due to economic uncertainty, trade wars, and expectations another US Fed rate cut.
Headline news that India is looking to buy more US crude oil and work towards a US-India trade deal- US tariffs are now at 50%.
USDA Sept. Hogs & Pigs report shows more contraction rather than expansion- supportive for hog futures.