The U.S. slapped levies on $34 billion of China’s exports at midnight. China retaliated, but the markets already had this trade war factored in. Utterback Marketing President Bob Utterback says at least the U.S. now knows the rules of the game. “I think the feeling is we have a lot of the bearishness factored in with the trade. We’ve got the crop about as good as it can get and most longs have liquidated. Now the markets having that knee-jerk reaction of getting to oversold.” Utterback says the unknown is the ‘next big shoe to drop’. “Will it go into the autos or will they come back to soybeans? But right now, Brazil’s bean prices are significantly higher than us, because China is buying from South America. Once they drain all the inventory out of Brazil and in China still needs the inventory, they’re going to have to come to us. That’s the long term positive.”
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