A market analyst says the ag industry is closely watching this week’s trade negotiations between the U.S. and China.
Jim McCormick with AgMarket.Net says he’d like to see written commitments of purchases for ag goods like soybeans and beef. “Those are the low hanging fruit per say for China to buy. The real question is China kind of hinted at this back in March that maybe they’d be interested in other row crops like sorghum, corn, DDGs and ethanol. That is what the trade is going to look for.”
He tells Brownfield soybean prices have moved higher. “New crop beans are trading over $12 that’s part of the reason why beans are up at $12 because there is anticipation that China is going to buy beans. We will se.”
He says enforcement of a potential deal will also play a role. “That’s going to be part of the process of what the trade has to figure out. What exactly was agreed to? Are these just deals? Some of the questions you have with the deals are they just deals between President Trump and President Xi, and if President Trump is no longer in power, the Chinese could say this deal wasn’t between us and the government.”
President Trump and his trade team arrived in Beijing Wednesday morning and the two-day summit is expected to start tomorrow.
