President Trump Considering Withdrawing from World Trade Organization if They Do Not “Change Their Ways”
In an interview with Bloomberg yesterday, President Trump threatened to pull out of the World Trade Organization (WTO) if they continue to, in the Trump Administration's opinion, treat the US unfairly. US Trade Representative Robert Lighthizer claims that process of settling disputes in the WTO have interfered with US sovereignty and that admitting China to the WTO back in 2001 was a mistake because he believes that they are unable to deal with the Chinese non-market economy. The US leaving the WTO would have more significance than the Trade War with China, as it would destabilize the post-World War II international trade system that the US created. President Trump has called the WTO “the single worst trade deal ever made”.
Export Sales Announcements
Export sales of 273,800 metric tons of corn for delivery to unknown destinations during the 2018/2019 marketing year. Export sales of 250,000 metric tons of soybeans for delivery to unknown destinations during the 2018/2019 marketing year.
USDA Secretary Perdue Claims Outbreak of African Swine Fever In China Is Likely Larger Than is Being Reported
Secretary Perdue claimed on Thursday that the media in China is likely underreporting the spread of the African swine fever (ASF) that has affected hog farms across China. The Chinese Ministry of Agriculture and Rural Affairs said on Thursday that 185 hogs were confirmed to be infected on a farm in Anhui province in eastern China. This marks this 5th confirmed outbreak of ASF this month. If hog herds were to be culled in China, it would significantly affect demand for soybeans there. Last year, China imported 96 MMT of beans, with nearly a third coming from the US, where they are predominantly crushed and the meal is used as feed for domestic hog farms.
Heavy Rains, Possible Flooding Expected Over Central Corn Belt
The National Weather Service is reporting the formation of an “active wet pattern” over Iowa, Minnesota, and Wisconsin over the weekend. Flooding may occur in these areas and Wisconsin specifically was recently under flood warnings and advisories earlier this week following heavy rains. Parts of SE Missouri and SW Kansas are also under flood warnings after nearly 5 inches of rain fell yesterday. More rain is forecast for the area again on Monday.
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