China pauses purchase of U.S. farm goods like soybeans, pork

Yahoo Finance's Jared Blikre breaks down the latest on U.S, China relations.

Video Transcript

ALEXIS CHRISTOFOROUS: All right, I want to get a look now at commodities with Jared Blikre. Because Jared, things really changed overnight after China reportedly came out and said it may not be buying some farm exports from the US-- namely, soybeans. How is that impacting the commodities market right now?

JARED BLIKRE: Well, we can see commodities are broadly lower in terms of those kind of agricultural exports that we have right now. And you have to think that this is going to increase trade tensions. Right now, we're looking at soybean futures, but really, the chart isn't showing a lot of weakness here. We're simply in this trading range that we've had for about the last six weeks. We can see something similar going on in corn futures, just kind of treading water here, although we have broken out slightly to the upside, but not a lot of traction.

Very similar situation in wheat futures as well, but we can also see this in lean hogs and not only lean hogs under pressure, but we've seen live cattle futures-- because of the beef complex in the US getting hit recently-- and that has to do with the export situation, excuse me, the manufacture and the meat-processing situation that we have in the US. You know, Tyson is closing plants, et cetera.

But otherwise, we do have some strength in the metals complex. And I specifically want to call out silver and copper, because silver has now hit a multi-month high as we can see right here. And we are up two big points from last week's lows. That's a pretty big move. A lot of people in the metals complex are banking on what could potentially be a huge move, because it hasn't really caught up with gold just yet.