Possibility for New Tariffs vs China
- Over the weekend, President Trump stated new tariffs could be raised against China due to alleged cover up of coronavirus.
- China lags fulfilling commitments of the Phase 1 trade deal signed in January.
- China has responded they are resolving technical issues and barriers to trade.
- Ag Secretary Perdue said it is “disturbing” that China is buying products from other origins that could be sourced from the US.
FBN’s Take On What It Means: China has made small purchases of old crop US corn, wheat, and soybeans along with more substantial amounts of sorghum and pork. China’s purchases have been made when it made economic sense to do so and the U.S. was competitive in the world market. It was expected they would make larger purchases as supplies elsewhere diminished. If US/China relations sour due to blame for the coronavirus outbreak, the trade deal and potential for new crop purchases would be at risk. It is hoped that cooler heads will prevail and future trade is not affected.
Rains Expected for Eastern EU and Black Sea
- Areas of precipitation are forecast to include Romania, Bulgaria, Moldova, Ukraine and southwestern Russia into the Ural Mountain region.
- Rainfall in the lower Volga River Valley and western Kazakhstan could be limited.
- Rainfall of 0.30 to 1.00 inch is expected in much of the region with several local totals of 1.00 to 2.00 inches likely.
- Rain already fell during the weekend from the Balkan countries into Poland, Belarus and western Ukraine with amounts of 0.05 to 0.50 inch common.
FBN’s Take On What It Means: If rains forecast for this week continue to be realized, they would bring some badly needed relief from dryness, but more rain will be needed later this month.
The risk of trading futures, hedging, and speculating can be substantial. FBN BR LLC (NFA ID: 0508695)
