Tag Archives: China

The grains saw their turn around Tuesday a day late. Following a lower overnight session and open grains found strength midday. On the Fontanelle Final Bell Arlan Suderman highlighted that funds continue to paint the grains with an inflationary bias. He see’s the recent down turn in the markets as a buying opportunity and believes the funds have bought the break. Of course there is still plenty to consider for the supply and demand side of the market. South America faces continued weather issues. Trucker strikes are paralyzing the slow harvests movement from the fields to the ports. In the US the next WASDE report is less than a week away and there are questions of how USDA will handle ending stocks of corn and soybeans.

During the Fontanelle Final Bell Suderman also discusses the global market picture and where China currently stands. The Lunar new year will occur next week and China will go into a week long celebration. Travel is being restricted due to Covid-19, but Suderman believes there will still be local celebrations given many missed out last year due to covid lockdowns.

You can hear all of Suderman’s comments here:

  • Cattle market sees a demand driven market
  • How is supply looking
  • Reading restaurants are starting to open up
  • Retail demand is amazing-packers having more money to spend
  • End of month 16/18 have been lower
  • Stock market collapse
  • Hogs saw a big week-finally off its “tail”
  • Big export business to China
  • 230 million bushels of corn just this week to China
  • Exports off the charts
  • Bean see a bit of drag with harvest in Brazil

The Biden administration will approach economic and trade relations with China with “strategic patience.” The administration is starting to review current policies, including reviewing tariffs, but that doesn’t mean Biden favors removing tariffs.

White House Press Secretary Jen Psaki said early this week the President “will take a multilateral approach to engaging with China, and that includes evaluating the tariffs currently in place,” adding, “the President is committed to stopping China’s economic abuses on many fronts.”

The Phase One trade agreement between the U.S. and China has increased China’s purchases of U.S. farm commodities. However, the purchases are still not on target to reach levels pledged in the agreement. China is expected to continue the increased purchases in 2021.

A China Foreign Affairs Ministry Spokesperson responded, “We hope the new U.S. administration will learn from the Trump administration’s lessons where they carried out the wrong policies on China.”