Highlights
After cutting interest rates 10 basis points Monday, yesterday China’s Central Bank presented the largest stimulus package since the pandemic to bolster economic growth in the country, lowering borrowing costs, cutting mortgage interest rates, smaller bank reserves, free money for certain industries and groups of people, etc. Their stocks and bonds ripped to their highest trade in more than two years, which contributed greatly to higher CBOT commodities yesterday morning. By mid-day yesterday, the market realized the increased Chinese demand for everything will take months to develop and CBOT prices ended about where they started. Less rain in the forecast for Brazil was also supportive.
As it stands now, at midnight on Monday, 30 September, the US government will shut down due to a lack of money and the dock workers on the Gulf Coast and the East Coast will go on strike. Potentially more bearish longer term than anything else is Biden's additional tariffs will be expanded at midnight Monday. Will China put the tariffs back on US soybeans, beef, and pork?
At 11 AM Central Monday, the USDA will release its Quarterly Grain Stocks and Small Grain Summary Reports. The corn and bean inventory as of 1 September will be the carryout for the 2023 crop marketing year and the carry-in for the 2024 crop marketing year.
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