NASHVILLE, TENN. (RFD NEWS) — All eyes are on Washington, D.C., as President Donald Trump prepares to host Chinese President Xi Jinping. It is Xi’s second state visit with Trump since Trump returned to office for his second term.
Agriculture is expected to be a major topic, and U.S. agriculture groups are eager to begin talks.
The National Sorghum Producers wants China to remove its 10 percent retaliatory tariff on U.S. sorghum and commit to buying 5 million to 7 million metric tons each year.
China has historically purchased close to 80 percent of U.S. sorghum exports.
The group says growers need more than trade announcements, citing the need for commitments that turn into actual grain sales.
Soybean growers are also watching closely.
Marc Rosenbohm with Terrain Ag says soybean markets could react significantly once meeting details are revealed.
“I think we could see a fair amount of volatility around that meeting on the soybean side in particular, depending on how quickly we get information out of that meeting and also what the results are there,” Rosenbohm explains.
The grain & oilseed analyst says that could depend on whether the two countries reach agreements involving more agricultural products or a generally friendlier trade environment.
“We’ve seen leading up to that meeting anywhere from, say, 38% to 64% of their 25 million metric ton commitment for soybean purchases for this crop year, depending on how you count what’s announced to unknown destinations,” he continues. “It looks like we’re probably on track.”
Rosenbohm says despite the uncertainty, there is a bright side this year.
He says soybean demand remains a bright spot for the market, with export sales running at their highest level in roughly four years.
Trump and Xi are set to kick off their official talks this morning.
We’ll bring you any updates from the meeting related to agriculture tonight on the Rural Evening News.
