Grain, Cotton Futures Tumble After Trump-Xi Summit Lacks China Ag Details, Sending Cotton Down 333 Points
Updated
Updated · Barchart · May 18
Grain, Cotton Futures Tumble After Trump-Xi Summit Lacks China Ag Details, Sending Cotton Down 333 Points
5 articles · Updated · Barchart · May 18
July corn fell 11 3/4 cents Friday to $4.55 3/4, soybeans lost 15 1/2 cents to $11.77, and cotton dropped 333 points to 80.61 cents as traders dumped positions late last week.
The selloff followed the Trump-Xi summit in China, where officials signaled China would buy “billions” of dollars of U.S. farm goods but offered no concrete purchase details, undercutting bullish bets.
Speculative long liquidation and profit-taking accelerated the decline on Thursday and Friday after soybeans, winter wheat and cotton had hit multi-week or multi-year highs earlier in the week.
Prices rebounded sharply early Monday after weekend statements from both governments gave more specifics on Chinese agricultural purchases, putting bulls back on firmer footing.
Weather and supply risks still underpin the complex: parts of the Corn Belt face short soil moisture and frost risk, while Kansas wheat yield estimates of 38.9 bushels per acre point to tighter U.S. wheat supplies.
With U.S. wheat crops failing from historic drought, why might record global supplies prevent a major price surge for farmers?
Beyond China's new pledge, can U.S. agriculture overcome Brazilian competition and rising costs to ensure farmer profitability?
The U.S.-China summit delivered a 'fragile truce.' What underlying risks could easily shatter this newfound market stability?