China is making more purchases of U.S. soybeans this week ahead planned trade talks in Beijing between the U.S. and China next week. China’s biggest food company was asking for prices Wednesday.
The alleged purchases come after the most recent buy just before Christmas when China purchased roughly 1.2 million metric tons of U.S. soybeans, according to data provided by the U.S. Department of Agriculture. However, data on the latest expected sales may not be published, as much of USDA is closed as part of the government shutdown.
Sales of other commodities are expected to China, as well. Arlan Suderman of INTL FCStone told Bloomberg News China could seek U.S. corn this month, but the market has not seen confirmation. Suderman notes “Supplies are ample, but the balance sheet would quickly tighten if China re-enters the market with significant purchases.”
The government shutdown, ending soon or not, is likely to delay the January World Agriculture Supply and Demand report. Scheduled for next Friday, January 12th, the World Agricultural Outlook Board needs a full week to release the report, once the government opens.
The government shutdown could stall progress on President Trump’s North American Free Trade Agreement replacement, the U.S.-Mexico-Canada Agreement. Analysis of the agreement has stopped during the shutdown as the U.S. International Trade Commission, responsible for examining the trade agreement, remains at a standstill.
U.S. soybean exports to Europe, the Middle East and North Africa have increased 140 million bushels compared with the last marketing year at this time. The U.S. Soybean Export Council called the markets “a bright spot,” as the data represents a 210 percent increase in whole soybeans and a 17 percent increase in soybean meal exports for the U.S. Soy industry.
The Trump administration remains quiet ahead of talks with China next week, fueling concerns that concessions by China may not be enough to satisfy U.S. demands.
New leaders convene in Congress Thursday with the need to find an end to the government shutdown. The Department of Agriculture and other federal agencies are reaching a “breaking point,” according to Politico, as many agencies are running out of carryover funding.
A large trade deal comprised of 11 nations became official on Sunday, December 30th after years of back-and-forth talks. A Straits Times Dot Com article says the first six countries to ratify the pact are now enjoying steep cuts in tariffs.
President Donald Trump took to Twitter to talk about a recent phone call with Chinese President Xi Jinping. The president noted that the two had what he called a “long and very good call,” saying that a possible deal between the two nations is making good progress.