USDA data shows ag trade balance sheets are in the red with double-digit declines in the billions of dollars expected this year.
For wheat, economists explain that there is a unique situation happening.
“We see wheat exports rounded up to $2 billion, which is down 6% from the same period last year, whereas we’ve got a 6% increase by volume for last year, so we’re actually exporting more wheat, but at a lower price. So we’re seeing a negative value change over the last year,” said USDA economist Bart Kenner.
While the markets work to digest all the recent changes, some traders are following the numbers and they say they are showing a pattern.
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Rich Nelson, a commodity broker for Allendale Inc., joins us to break down what the U.S.-China trade agreement means for the ag economy.
The U.S.-China summit raises hopes for stronger exports and reduced barriers, but U.S. ag players should remain strategically cautious until concrete volumes and certifications materialize.
Global agriculture is stabilizing after years of price swings, with flat to modestly rising returns expected as productivity offsets slower demand growth.
Expect incremental near-term lift for feed grains, proteins, and ethanol as tariff cuts and smoother approvals translate into real orders.
Cattle markets are collapsing this week, and analysts say that several factors are at play. Consumer beef prices also remain near all-time highs, threatening long-term demand.
