With the lack of government reports we’ve seen during the shutdown, the ag marketplace is desperately searching for any news to react to. The Chinese trade deal framework provided a decent shot of energy to the market prices, but the deal may not be as bullish as it seems. Allendale commodity broker Greg McBride said it would be difficult for China to follow through on some of their commitments within this deal.
Additionally, it will still be difficult for the U.S. to compete with Brazil since the value of their currency- the real- is still declining.
While the situation has improved, McBride said the current tariffs are still going to be a roadblock for trade.
The team at Allendale can be reached by calling 800-262-7538, or you can visit allendale-inc.com.
