November canola is down $10.40 per metric ton (mt), Dec soybean oil is down .93 cents per pound, November European rapeseed is down 6.25 euros per mt and December Malaysian palm oil is down 1.02%. Dec oats are up 2 1/4 cents per bushel. November crude oil is down $2.22 per barrel, November ULSD is down $.0614 per gallon, and the December Canadian dollar is up .0016 at .71650. The December U.S. Dollar Index is down .570 at 98.715 and the October Brazilian real is down .00340 at 0.18165.

Unfortunately, my general comments from this morning's DTN Plains, Prairies Opening Comments took a dark turn for the worse as President Trump issued a foreboding social media post prior to midday, sending markets sharply lower across the board. In it, he lashed out at China for restricting rare earth materials, suggested the meeting between Xi and himself scheduled for the end of the month may as well be cancelled, and hinted at a return to sharply higher tariffs. Everything from grains and oilseeds to meats to equities to energies fell sharply, even the U.S. dollar broke hard on the developments. The two markets getting a boost were Treasuries (due to expected damage to the economy) and gold due to its safe-haven status.

In case it was missed, the was my morning comments that foreshadowed the developments: "In a series of moves made over the past day, it is becoming clear that China is accelerating the trade war with the U.S., not preparing to make any deals on soybeans, regardless of President Trump's desire to do so. By midday Thursday, China had further increased restrictions on rare earth materials and magnets -- likely the most important item on Trump's shopping list. At the time, Trump responded that although soybeans would be discussed at the upcoming meeting with Xi, the U.S. may have to halt imports from China. That could be taken as a threat that the tariff pause may not be extended again unless China cooperates. Those developments led to a late day selloff Thursday for soybeans with the rhetoric increasing overnight, pressuring the soybean complex further. China announced it would charge a special port fee on U.S. vessels beginning Oct. 14, similar to the one the U.S. charges on Chinese vessels. It also aggressively denounced the U.S. putting Chinese firms on an entity list and strongly urged the reversal. In the meantime, the U.S. senate passed legislation that required American chip makers to give U.S. companies "priority access" to their computer chips before China, implying the ability to restrict the sale of those to China. As you read the details and knowing China typically takes years to work through much smaller trade disputes, there is nothing to suggest any U.S. soybean sales to China should be expected anytime soon."

It's important to remember this could be an initial reaction from Trump with a much more cooperative approach yet to come, given his negotiating style. As well, it hasn't been China buying soybeans from the U.S. with it still likely that other countries may need to turn to the U.S. if China dominates South American's exportable supplies.

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