Stock Markets Tumbled Worldwide as Investors Fled from Equities
Grains Were Mixed in the Overnight Session
In the overnight session the grains were mixed with March corn down 1/4 of a penny, March soybeans up 5 3/4 cents, March Chicago wheat down 1/4 of a penny and Kansas City wheat up 1/4 of a cent.
The latest South American weather model showed little change from the previous days forecast. Thunderstorms and showers will move from southern Argentina into the central production region starting Wednesday and more widespread precipitation is expected between Friday and Sunday. The Brazil forecast expects conditions to stay favorable to crop development.
On Sunday, the Chinese Ministry of Commerce announced an Anti-dumping and anti-subsidy investigation on Sorghum imports from the United States which could result in tariffs. The reaction in the US was a sharp decline in basis values between 20 and 80 cents on Monday as a result of the news. The news from China was released only a couple weeks after the US announced that tariffs will be added to solar panels and washing machines from China. The action by both the US and China has analysts concerned of a US and China trade war.
U.S export inspections released on Monday showed that wheat met expectations with 428,557 metric tons inspected for export. Corn and soybeans both beat analyst expectations with inspections totaling to 1,073,868 metric tons for corn and 1,303,723 metric tons for soybeans. Some analysts see the possibility for demand to shift into corn if tariffs are applied to sorghum.
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