Tag Archives: China

Turn Around Tuesday-sort of. Market deals with outside market pressure from lack of talks from China. Pushes coming to D.C. to move forward with USMCA. Harvest delays, planting progress in South America. Cattle market could continue to move higher in the weeks ahead. Worries of heavier cattle coming to market. Hogs have seen some struggles.

 

Ag Secretary Sonny Perdue is hoping that a third round of trade aid payments to farmers will be unnecessary in 2020 because of a new trade deal with China.

The Hagstrom Report says Perdue spoke with reporters last week shortly after returning from a “successful” trade mission to Mexico. Farmers “would rather have trade than aid,” Perdue says. At the same time, he did say the second round of 2019 trade aid is approved and will be heading to farmers soon. “We have just gotten authorization on the second tranche,” he said. “I expect payments to be out to farmers by late November or early December.” The U.S.-Mexico-Canada Trade Agreement was one of the big topics of conversation on the trip to Mexico.

Perdue says Mexican officials are hoping Congress will sign off on the agreement as soon as possible. “They’ve done their work, as you know, and they’re anxious for us to complete our task as well,” Perdue says. Immigration was another topic of conversation with Mexican officials. Perdue is hopeful that the Mexican government will begin a program to “pre-certify” workers southeast Mexico for the H-2A Program. Southeast Mexico is one of the most poverty-stricken areas of the country.

Is markets getting sick of the China situation.  Beans still see some strong demand & fresh Brazilian planting.  Is Brazil working to take away more markets from the United States?   Cattle market is setting up for some volatility in the markets.  Hogs undervalued on a global sector.

 

President Donald Trump says Iowa is one of the places being considered for the signing of a trade agreement between the United States and China.

U.S. and Chinese negotiators are working to finalize the deal in time for Trump and Chinese President Xi Jinping to sign it at a summit in Chile in mid-November. But Chile announced Wednesday that it was canceling the event due to ongoing mass demonstrations.

Now the two countries are looking for an alternative location. There’s no guarantee they’ll work out the details of the agreement, which was initially focused on agriculture.

Farmers have been hit hard by the trade war. Trump has been trying to assure them that they will come out ahead in the end.

The U.S. and China are on track to sign the phase one trade agreement next month. President Donald Trump this week stated the negotiations are running “ahead of schedule.” The South China Morning Post reports Trump and Chinese President Xi Jinping are set for a November 17 meeting in Chile to sign the interim trade deal.

Trump says the agreement would “take care of the farmers,” among other things, including banking provisions. A spokesperson from China’s Foreign Affairs Ministry confirmed the progress, saying, “the two sides made substantial progress” in recent talks. Top-level negotiators met over the phone last Friday and will again very soon.

The agreement includes an estimated $40-$50 billion of agricultural purchases by China over a two-year period, with $20 billion possible the first year. Market analysts say agricultural trade with China appears to be starting to normalize, ahead of the agreement.

In 2017, before the trade war began, the U.S. shipped $19.5 billion worth of agricultural products to China. However, the trade war cut those exports in half.

U.S. Commerce Secretary Wilbur Ross Monday suggested the phase one agreement with China doesn’t have to be ready to sign next month. Speaking on Fox Business Network, Ross says, “It has to be the right deal, and it doesn’t have to be in November.”

President Donald Trump has indicated the deal would be ready to sign at the November APEC summit. The agreement includes the intent by China to purchase up to $50 billion worth of U.S. agricultural goods over the next two years. However, China has said it won’t move forward with significant purchases unless Trump agrees to cancel a planned round of tariff increases set for December.

The comments from Ross seem to suggest the phase one agreement may not be as solid as previously portrayed. Agriculture is described best as cautiously optimistic that the phase one agreement can be completed, and that China massively increases its purchases of U.S. farm products. However, China recently purchased soybeans from Brazil, an uncharacteristic move for this time of year.

World share prices retreated after China reported today that its economy grew 6.0%, its slowest pace in 26 years, in the latest quarter. In early trading, Britain’s FTSE 100 edged 0.1% lower, the CAC 40 in Paris lost 0.2% while Germany’s DAX reversed early losses, edging 0.1% higher. In Asia, the Shanghai Composite index gave up early gains, closing 1.3% lower. Hong Kong’s Hang Seng shed 0.5%. South Korea’s Kospi shed 0.8%. Wall Street looks poised for a tepid start, with the future Dow and S&P futures 0.1% lower.

BEIJING (AP) _ China’s economic growth slowed to 6% over a year ago in the latest quarter, its lowest level in at least 26 years, amid a tariff war with Washington and weakening domestic consumer demand. The latest level is down from the previous quarter’s 6.2%. Chinese trade has suffered from U.S. tariff hikes in a fight over Beijing’s trade surplus and technology plans. Factory output, investment and consumer spending also declined.

WASHINGTON (AP) — The leaders of the 189-nation International Monetary Fund and sister organization, the World Bank, are laying out their visions for the future, hoping to achieve a world with less extreme poverty and more economic growth. However, IMF Managing Director Kristalina Georgieva and World Bank President David Malpass will likely find their discussions over the next two days consumed with more immediate problems, such as rising trade tensions. Both officials will deliver speeches at the opening session today of the annual meetings of the two organizations.

BRUSSELS (AP) — After agreeing on terms for a new Brexit deal, European Union leaders are meeting again today to discuss other thorny issues, including the bloc’s budget and climate change. No decision is expected on the next long-term budget for 2021-2027, though, a topic more divisive than Brexit.

MILAN (AP) — Italy’s main farm lobby is forecasting a 20% drop in sales of Italian agricultural products targeted by new U.S. tariffs. The group, Coldiretti, says the 25% tariffs that take effect today will hurt sales in the United States of Italian Parmesan and Gorgonzola cheeses, as well as cured meats, citrus fruit and liquors. The Italian products on the tariff list represent half a billion euros ($550 million) in export value.