U.S. beef exports to China have been stalled since early March, and chicken exports dropped nearly 50 percent back in February.
Economists with StoneX have been watching the situation, and say they are not holding their breath for a resolution anytime soon, pointing to the high approval rating of China’s president.
“Xi Jinping is the one who has the courage to stand up to America, and so a sense of nationalism is very strong in China right now, and Xi Jinping’s popularity is very high. And so, if he negotiates, he risks looking weak in doing so, and that’s also an incentive for him not to negotiate. I don’t expect an agreement with China anytime soon. A little bit sobering related to that, USDA currently projects ending stocks of soybeans in China at 44 million metric tons. That’s surplus supplies. That’s nearly twice what they bought from us this year,” said Arlan Suderman.
China’s government recently distributed a propaganda video condemning the U.S., accusing America of bullying other countries into submission. Suderman says this situation is likely to be a defining moment in the fight for the largest economy and military in the world.
Tariff relief and new trade agreements may temper food costs by reducing import costs.
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Lewie Pugh with the Owner-Operator Independent Drivers Association (OOIDA) discusses the gap in truck driver education programs and how it impacts road safety and supply chain economics.
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Georgia has regained its HPAI-free status after a swift response to October’s detection. Commissioner Tyler Harper urges producers to stay vigilant and maintain biosecurity.
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While this month’s WASDE report will not include updated figures on U.S. crop size, officials say it will offer a clearer picture of crop conditions in the Southern Hemisphere.
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USTR Jamieson Greer signals a narrower trade deal with China, adding more market uncertainty. The Farm Bureau also supports reviewing China’s missed trade commitments under the Phase One.
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Mike Steenhoek, with the Soy Transportation Commission, shares his outlook on current grain stocks and transportation lines amid bumper crops filling bins across the United States.
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