Trump May Negotiate Separate Trade Deal with Mexico
President Trump has suggested that he may pursue a bilateral trade deal with Mexico and later one with Canada, putting the future of NAFTA in doubt.
NAFTA renegotiation talks have been happening since August but have failed to gain much traction. The U.S. has brought forth official complaints to the WTO regarding both Canadian and Mexican tariffs. Mexico’s Economic Minister is heading to the White House on July 26 to engage in bilateral trade deal talks with the Trump Administration.
New Soybean Buyers Emerge as China Halts U.S. Purchases
Egypt, Pakistan, and Mexico have all been bargain hunting as bean prices have collapsed following China’s withdrawal from the U.S. market. Egypt has imported 2.1 MMT of US soybeans in this marketing year so far, compared to only 783,000 MT, a 168% increase. Pakistan has imported 1.4 MMT as well, up 113% year on year. Even with NAFTA’s future being uncertain and talks of soybean import taxes, Mexico has imported 1 MMT, which is a 180% increase from imports this time last year.
High Heat Continues to Cook Southern Plains
W Missouri and E Kansas have already struggled with drought and heat but the current heat wave has the heat index as high as 110 degrees, with very little rain in sight. Areas in Oklahoma and Texas are expecting to see the heat index as high as 115 degrees this week. The 6 to 10 day forecast shows rain in the Texas Panhandle and along the Oklahoma-Texas border.
Corn And Soybeans See Strong Export Numbers This Week
The USDA reported 613,400 MT of new crop soybeans were sold, with top buyers being unknown destinations, Argentina, Mexico, and Pakistan. This number came above analysts’ expectations and was a 126% increase week on week. Both old and new crop corn saw strong export numbers, with South Korea, Japan, and Mexico constituting the major buyers. Old crop sales were up 59% from last week and 38% higher than the 4 week average. Wheat fell in line with expectations at 300,000 MT. A considerable increase over last week’s 136,400 MT but still down 25% on the 4 week average.
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