Tidbits, China Tariffs, Crop Progress & Yields, ENSO & Super El Nino, Export Inspections 9/29/26
Tidbits
China announced tariff reductions on a broad range of U.S. agricultural products on Monday (Sunday night in USA), including corn, wheat, sorghum, soybean meal, and soybean oil, but excluded soybeans. U.S. soybeans continue to face an additional 10% Chinese tariff, which remains a significant obstacle for private Chinese crushers, but not the Chinese government buyers. All the soybeans purchased by China this year have been purchased by the government. Since the government sets tariffs, the government does not pay tariffs to itself.
Brent oil prices rebounded by around 3% to above $107 a barrel on Monday morning after President Trump rejected a peace deal from Iran that would have reopened the Strait of Hormuz. Elevated oil prices are stoking concerns of persistently higher global inflation, increasing expectations that central banks will push up interest rates. Government bond yields last week soared to new multi-decade highs, aggravated by hot U.S. business activity data and rising government debt concerns.
The U.S. Transportation Department on Monday will finalize sharply lower vehicle fuel economy standards through 2031, reversing a push by the Biden administration to force automakers to build more electric vehicles.
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