Markets Steady on Coronavirus Concerns
China Pledges to Fulfill US Purchases
According to Reuters, Chinese President Xi told President Trump that China will still meet its Phase 1 trade deal purchasing targets despite delays linked to the coronavirus.
Trade watchers, economists, analysts and others have been questioning if the coronavirus will allow China to reach their purchase targets.
The coronavirus has forced Chinese officials to slow the imports of some foreign goods.
The coronavirus epidemic has killed over 900 people in China.
FBN’s Take On What It Means: We believe that the Chinese President’s Xi’s comments are welcome and can be beneficial for the global financial markets. With 11 months left in the year 2020, we believe that there is plenty of time for China to realize their purchase goals from the Phase-1 trade agreement.
African Swine Fever Spreads In Philippines
The Philippines confirmed on Sunday that African swine fever (ASF) infections have spread in the south of the country, which accounts for nearly a third of the nation's hog herd.
The Philippines is the world's 10th-largest pork consumer and seventh-biggest pork importer.
The Philippines is the 6th largest export destination for US pork.
The country reported its first African swine fever outbreaks in September 2019.
There is no vaccine for ASF.
FBN’s Take On What It Means: We believe that the spread of ASF in the Philippines can be a positive for the US hog producer and the US pork export program if the domestic herd shrinks. The spread of ASF in Asia has been a catalyst for enhanced US pork exports. Ultimately we believe that growing US pork exports is a positive for regional feed demand which can be positive for soybean meal and corn basis.
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