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February 27, 2019 | Grain Hedge Insights | Kevin McNew | Views: 1285

U.S. and China Negotiating Ethanol Exports

Trade negotiators have asked China to reduce tariffs

U.S. and China Negotiating Ethanol Exports And Removal of 70% Tariff    

Agriculture Secretary Sonny Perdue said on Tuesday that U.S. trade negotiators have asked China to reduce tariffs on U.S. ethanol, but it was not immediately clear whether Beijing was willing to oblige.

Last summer Beijing imposed retaliatory tariffs of up to 70% on U.S. ethanol shipments.  The U.S. is looking to reduce the tariff to 15%.

Following China’s tariff, U.S. ethanol exports have fallen to negligible volumes.    

How Does This Impact the U.S. Farmer? Like all other Chinese related agricultural trade items, the market demands details. China is moving toward implementing a nationwide E-15 ethanol program which will stress domestic state-owned corn reserves.  Many believe that China will have to import corn and ethanol to satisfy growing demand but volumes and time frames are necessary.           

Brazil Officials Find Weed Killer Glyphosate, Roundup, to be Non-Cancerous

Analysts at Brazilian health agency Anvisa have determined that the weed killer glyphosate does not cause cancer while recommending exposure limits as international pressure to reduce use of the chemical grows.

Companies such as Bayer AG and its Monsanto unit, which produces glyphosate-based weed killers and market the product under the Roundup brand, have faced intense legal challenges over allegations that glyphosate causes cancer.

Roundup is currently the largest commercial weed killer in Brazil.  

Monsanto faces $78 million in damages after a jury in California last year found that its products caused a man's cancer and the firm failed to warn customers of the dangers of its use.  Bayer AG is scheduled to go on trial again in California in a separate legal dispute from last year.

How Does This Impact the U.S. Farmer?  Not really a direct impact on the U.S. farmer but Brazil finding glyphosate based weed killers, Roundup, to be non-cancerous could help or enhance the country’s agricultural competitiveness.                 

  

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