Morning Market Direction:  Corn and Beans unc to up 1

Corn and soybean futures are trending a touch higher this morning while wheat gives back a portion of yesterday’s gain. Severe flooding across portions of NE, IA and MO remains on the forefront and may be encouraging some buying interest ahead of the 2019 planting season. Equities are lower for the second consecutive day as disappointment looms regarding the pace of trade negotiations with China.

The China Finance Ministry issued a statement that the value added tax rate for agriculture purchases will be cut to 9% from 10%. The VAT rate for agriculture product purchases for processing will be reduced to 10% from 13%. The cuts will take effect on April 1st, 2019.

President Trump says if the U.S. gets a trade deal with China, tariffs could stay in place for some time to ensure Beijing "lives by the deal," adding that China has had "problems living by certain deals."

Trump said Wednesday the White House was discussing keeping tariffs for a "substantial period of time," adding that China has had "problems living by certain deals."

News wire reporting the EPA is likely to issue partial waivers to some e of the 39 small refineries who have applied for relief. The agency typically either approves or denies a waiver request in full and has only granted one partial exemption since the start of the RFS program more than a decade ago. The EPA is set to decide on its pending 2018 exemption applications by the end of March.

Rabobank analyst sees China’s pork imports doubling in 2019 due to African Swine Fever.

Summary Items:
Weekly export sales for soybeans were disappointing.
NOAA will update its 30 and 90 day forecast this morning.
China to lower VAT rate for ag and ag products in April.

Corn - $3.96 Spring    

Beans - $10.16 Spring