The grain markets continue to trend mostly lower following the phase one deal signing with China. INTL FC Stone Chief Commodities Economist Arlan Suderman says analysts need confirmation of China purchases. “The markets are rightfully skeptical about China. I can’t name one negotiated trade agreement from the past they’ve actually kept. There’s a healthy measure of skepticism there,” says Suderman. “The possibility this may be different keeps traders from building any big, short or sold positions, but traders are reluctant to build any significant ownership until they actually see proof of changes that China will follow through.” Until purchases happen, a range-bound trade is expected.
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