China may be preparing for a trade war

By Jon Scheve, Superior Feed Ingredients, LLC

Corn finished last week about 2 cents higher than the previous Friday. While the market was up week over week, Friday’s close was the lowest of all trading days last week.

Beans challenged the lower end of their recent trading range last week, but still managed to bounce off the lows by the close on Friday. The carryout is large, and the export demand is questionable, yet beans continue to bounce off the lows. The question now is whether that can continue.

China announced they would allow Brazilian sorghum into their country. This could become a problem for the U.S. farmer because China usually consumes nearly 90% of the world’s exportable sorghum, and the U.S. supplies over 50% of that. Currently, Brazil hardly exports any of its sorghum, despite producing 40% of what the U.S. produces.

Last year, the U.S. managed to export 75% of its sorghum, with about 90% of it going to China.… Continue reading