Archer Daniels Midland (ADM) expects China to comply with its commitments of increasing its purchases of US farm goods this year -– at the expense of Brazilian exports, reports AgriCensus.
As part of the phase-one trade deal between the US and China signed mid-January, China has committed to purchase an additional $12.5 billion worth of US agriculture goods in 2020 on top of the 2017 baseline figure.
“I do believe that China intends to comply with the phase one conditions of the deal and that has to come at the expense of Brazilian exports,” ADM’s CEO Juan Ricardo Luciano said on an investors call Thursday.
ADM’s CEO said that he expects the increase in US exports to be backloaded in 2020, meaning he expects to see an increase in shipped volumes during the second half of the calendar year.
