In the marketplace, there was thinning volume ahead of the elections on Tuesday, with expectations of potential fireworks in the overnight trading session, and with Donald Trump elected as president, soybeans dropped 20 cents. Corn down to before the market opened on Wednesday, Don Roose, president of US Commodities, says the bottom line:

“It’s the what we call ‘the Trump trade.’ It’s a risk off trade. The belief is that Trump’s going to be pretty tough on trade with China, with tariffs. So you know, we’ll see. But I think for right now, it’s a risk off type trade.”

However, on the other side…

“Equity market, the other side of it, think it’s going to be okay for business in general, the Dow Jones up over 1200 points.

And the US Dollar Index increased by over 1800 points before the market open, Roose adds there will be an important Thursday interest rate decision with hopes of rates down a quarter percent, as well as the crop production report on Friday. Still, he points out the trade is watching China, slow to buy corn and wheat and getting closer in trade relationships with South America, which is set for a large crop.

“When you look at it historically, as we get close to January, our demand slows down, anyway, for on the export front. So China has been busy buying beans ahead of the election, so I expect that they’re going to just meter back they’re buying as long as South America weather looks favorable.”