On the Grains
Good Tuesday morning, overnight we had the Trump tariff announcements and shockingly they look an awful lot like Trump 1.0 with an additional 10% placed on China Day 1. While China maintains that nobody will win a trade war, it looks like one is coming. It could take the number 2 economy down hard, as some are projecting a 1% slip in China’s GDP. Now on to the markets, what is surprising to me is that we had these announcements yesterday around 6 pm and the grain markets haven’t reacted negatively at all, obviously a bunch of tariffs were already priced in. Speaking of priced-in, flash export sales to Mexico of 364,791 MT for 24/25 and 89,298 MT of corn failed to produce any reaction. We continue to believe that it is frontend loading by Mexico here is a visual chart of where we are at marketing year to date.