Traders are watching U.S. and China relations for retaliation after the Trump Administration shut down the Chinese Consulate in Huston. Cornbelt Marketing market analyst Sam Hudson says traders are concerned about cancellations of commodities that have already been sold. “A lot of people think these rising tensions with China will derail our sales program to them. I can see and understand why, but I feel like the risk of that is really on the forward curve. If anything, I think China wants to book some cheap supplies ahead of South America’s crop. If all of a sudden South America has a production problem, where will they source all of these inventories?” Hudson thinks if there are cancellations, it will be later in the marketing year.
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