U.S.-China Deal Spurs Relief and More Questions for Farmers
Added 12-13-19 01:04:02am EST - “(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars.? Sign up here.? An initial U.S.-China trade accord includes a promise by Beijing to buy more American agricultural goods. That's likely…” - Finance.yahoo.com
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(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here.
An initial U.S.-China trade accord includes a promise by Beijing to buy more American agricultural goods. That’s likely to spark relief and questions for farmers and crop traders.
President Donald Trump signed off on a so-called phase-one trade deal, for which terms have been agreed but the legal text has not yet been finalized, according to people familiar with the matter. An announcement is expected on Friday Washington time.
Farmers and agriculture traders are hungry for more details. The more than yearlong tariff spat between the two nations weighed on commodity prices and upended global crop shipments, benefiting Brazil as an alternative supplier. While grower incomes have been insulated by U.S. government aid, many in the agriculture community have said they’d rather see the return of trade flows into China than continue to be supported by federal payments.
Market watchers will want to know whether China has committed to a hard value for shipments. U.S. Agriculture Secretary Sonny Perdue said Thursday that Chinese officials told Trump that they would buy $40 billion to $50 billion worth of American farm goods, but were reluctant to commit to contracts. Exactly how much China could buy and over what period are crucial questions.
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