NASHVILLE, TENN. (RFD-TV) — Trade relations between the United States and China seem to be improving steadily. Now, the country may be looking to purchase U.S. wheat for the first time in more than a year, a possible gesture of goodwill following their recent purchase of American soybeans.
Bloomberg reports that Chinese importers have inquired about U.S. wheat shipments for delivery between December and February. But without official confirmation from either country just yet, traders remain cautious. Wheat futures briefly hit a three-month high before retreating as the markets wait for word on whether the deal will actually happen.
The protein sector is also keeping a close eye on trade action. New agreements have been signed with Malaysia and Cambodia, and frameworks have been established with Thailand and Vietnam.
According to Dan Halstrom with the U.S. Meat Export Federation (USMEF), the news is especially welcome for the U.S. red meat industry, which says the deals mark real progress in tackling both tariff and non-tariff barriers.
“The U.S. historically has faced numerous non-tariff trade barriers into the Malaysian region. We’re excited to see some of those barriers eliminated,” Halstrom said. “U.S. pork has made strides in recent years in Malaysia, and there’s room for further growth, but I think the larger potential is for U.S. beef. Similar situation in Vietnam, there—the issue is tariffs. Relief on tariffs is going to be mandatory so we can compete on a level playing field. Hopefully, this is the first step in obtaining that. Thailand, another one with prohibitively high tariff rates, has also been noted. Another market that’s a much smaller market is Cambodia, which is probably more of a beef market than a pork market opportunity, but the commitment there for duty-free access is also encouraging. It won’t be a big market, but honestly, in that whole Southeast Asia region, you add all these markets together, it is significant.”
Halstrom adds that U.S. pork exporters still need relief from China’s retaliatory tariffs. On the beef side, the industry not only needs tariff relief but also requires China to renew registrations for U.S. beef plants, nearly all of which are currently ineligible in China.
Shaun Haney joined RFD News to discuss the potential impact of the Trump-Xi summit uncertainty, ongoing agricultural trade talks, and why geopolitical developments could carry important implications for farmers and global commodity markets.
