Grains external market

Favourable factors for lowering prices (bearish factors)

• The USA - China relationship

In the week just ended, no consensus has been reached, which has led to slight drops on the stock market.

A new postponement - President Trump announced that no agreement was signed at this week's summit but gave a vague estimate that there would be a chance that an agreement would be signed at the summit next month.

The postponement would bring a new wave of price declines, as most of the major players had positioned themselves in anticipation of price increases following an agreement between the two nations.

• USA - Mexico relationship

President Trump visited the border with Mexico on Friday, and before leaving, he announced that if he were dissatisfied with the Mexican efforts to halt emigrations, he would have introduced 25% duty on cars produced in Mexico and shipped to the United States, and would have been closed the border.

On the other hand, such a measure would put pressure on the cereal market in the United States and would cause price declines because Mexico has been one of the great buyers of US cereal in recent times.

Favourable factors to price increases (bullish factors)

Very low temperatures are reported in the Central and Western United States, which affects seeding even more than they have been affected so far.

Bad weather and frost also affect the wheat that has passed between the twinning stage and the emergence of the shoots.

• What's next this week:

The WASDE (Global Demand and Supply Report) monthly report, one of the most important reports of the USDA USDA.

Source: www.soyabrokers.com.