According to a report at Reuters, restoring trade to the previous conditions and allowing China to purchase U.S. soybeans and other agricultural goods when the market is favorable is probably the optimal outcome.
But having China commit to a certain volume or dollar amount of products, which has been a major demand of Washington, could be destructive and leave the U.S. soybean market in even worse shape than before.
Normal, nonregulated trade is probably best for the U.S. market, even if the resulting exports are relatively disappointing.
And disappointment may be likely at first given China’s recently stunted feed demand as it deals with the deadly outbreak of African swine fever (ASF).
Read the full report at Reuters.
