U.S./China Trade Deal Update: High-Level Phone Discussions Friday
Officials from both parties stated they were close to finalizing some parts of a trade agreement.
“Phase 1” signing is aimed for November at the Chile summit.
A main point of contention is the U.S. wanting China to commit to buying products at a specific time and price whereas China wants discretion.
Tariffs remain a key point of discussion.
Other trade-related news: China’s Commerce Ministry stated China will lift its ban on U.S. poultry and the U.S. will import Chinese-made cooked poultry and catfish products.
Both countries agreed “on the application of public health information systems for meat products”.
FBN’s Take On What It Means: The trade talks remain a key concern for U.S. agricultural producers. While news chatter is that a phase one deal is close, such rhetoric has been present before. Discretionary purchases, which is what China seeks, may not lead to a return to pre-trade war volumes purchased by China from the U.S. The lifting of the ban on poultry imports is welcomed and underscores China’s need for protein in the midst of its hog herd losses.
Argentina Elections: Macri Out; Fernandez In
Voting was held Sunday with the country pushing ag-friendly Macri out.
Producer concern is present about potential agricultural policy changes.
Fernandez will take office in December with previous president Kirchner as vice president.
Export taxes and limits were in place under previous president Kirchner.
Corn and soybean plantings are underway in Argentina.
FBN’s Take On What It Means: The newly elected president could impact producer decisions about planting if producers are concerned that export quotas will reappear or if export taxes could be raised. Wheat and corn plantings rose after Macri was elected in 2015 and producers may opt to favor soybean plantings over corn as a hedge against potential policy changes. This could be beneficial to U.S. corn exports longer term.
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