President Donald Trump and White House officials insist that China will be buying $40 billion to 50 billion worth of U.S. agricultural products annually over the next couple of years, if the countries nail down a trade deal in the coming weeks, but the question is whether U.S. farmers, processors and exporters could meet that challenge.
President Donald Trump’s claim that China is willing to address “agricultural structural issues” in a trade deal has the U.S. ag sector excited that real change may be coming to the U.S-China trading relationship beyond just increased commodity sales.
Corn futures contracts ended the day sharply lower after Department of Agriculture officials raised 2019/2020 corn yield estimates while lowering soybean yield estimates in the World Agricultural Supply and Demand report Thursday.
As much as growers long for an end to the trade war with China, there are long-term threats to demand for corn, soybeans and other crops that could depress commodity prices for years to come and lead to calls for higher government spending, economists say.
The next round of high-level U.S.-China trade talks are on schedule for next month despite the White House axing Chinese plans for a key official to tour U.S. farms and processing facilities this week.
China’s latest promise to reduce tariffs on U.S. soybeans and pork is being lauded as an olive branch ahead of new trade talks early next month, but China also needs more of the commodities to feed its people, according to industry and government analysts.