As Americans head to the polls to cast their vote for the next President, trade could be a deciding factor on the ballot. Here is the breakdown of what the election could mean for the U.S./China relationship.
Some analysts believe China is pushing pause on buying American farm goods as it waits to see who will occupy the oval office. The winning administration will have a major impact on the Phase One agreement’s success.
So far, Beijing has bought $36 billion dollars of U.S. ag goods, that’s 70 percent of its 2020 target. The remaining 30 percent is still uncertain, but experts say that election results will not be the only factor.
Chinese buyers are close to hitting their corn and soybean quota, thanks to record purchases. Buyers likely will not place any more orders the rest of the year.
In the southern hemisphere, Brazil is on pace to grow a record soybean crop. The new competition could mean China will not buy from the United States, until later next year.
Pork sales are still up in the air as China has been rebuilding its hog herds, after African swine fever cut production. More supplies means lower prices and less demand for foreign pork, but analysts say that China likely will not get back to where it was until 2025, which could also help with soybean demand.
Whatever the election outcome, farmers hope a trade relationship with China stays intact.
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