Three state representatives are asking U.S. Trade Representative Robert Lighthizer to slow down the pace of the North American Free Trade Agreement negotiations. They feel that gives the U.S. the best opportunity to come to a fair agreement on dairy exports. Representatives from Wisconsin, Washington, and New York all represent states that need open-market access to Canada in order to support their dairy exports. Milk Business Dot Com says there hasn’t been any substantial progress in accessing the Canadian dairy market or dismantling their Class 7 pricing system. Wisconsin and New York dairy farmers were hit the hardest when Canada implemented its Class 7 milk pricing system in the spring of 2017. As dairy prices across the U.S. remain low, the three representatives say their farmers are depending on access to the Canadian market in order to sell their “world-class dairy products.” In their statement, the legislators say, “We urge Ambassador Lighthizer to stop rushing the NAFTA negotiation process and focus on getting the best deal with both Canada and Mexico.” They add the arbitrary deadlines the administration says it faces are its own. “We should not be rushed to complete NAFTA negotiations at the expense of a good outcome,” they say.
Author: Agriculture News
U.S. Will Publish NAFTA Text Friday
Bloomberg says the Trump Administration will release the text of a bilateral trade agreement with Mexico on Friday. While the text will likely exclude Canada, it will leave open the possibility of Canada joining the agreement later. U.S. trade law says the text of the deal has to be published 60 days before it can be signed. U.S. Trade Representative Robert Lighthizer says the U.S. is moving forward with the Mexican agreement so the current president can sign it before he leaves office on December 1st. Canada is currently negotiating with the U.S. to join the pact but there are still several issues the two countries haven’t reached an agreement on. Lighthizer says the U.S. doesn’t want to risk having to renegotiate the pact with the incoming president of Mexico. “It wouldn’t be fair to the people involved, certainly U.S. workers, farmers, and ranchers, to start a new negotiation with a new president of Mexico,” says Lighthizer. Trade talks will continue with Canada, even after the deadline passes on Sunday. Lighthizer says the two countries may even carve out a separate deal.
Thursday’s Cash Grain Bids
September 27th, 2018
St Joseph |
|
Yellow Corn |
3.15 |
White Corn |
3.15 |
Soybeans |
7.65 – 7.87 |
LifeLine Foods |
3.30 |
|
|
|
Atchison |
|
Yellow Corn |
3.10 – 3.11 |
Soybeans |
7.68 |
Hard Wheat |
4.57 |
Soft Wheat |
4.38 |
|
|
|
Kansas City Truck Bids |
|
Yellow Corn |
3.20 – 3.23 |
White Corn |
3.61 – 3.66 |
Soybeans |
8.35 |
Hard Wheat |
5.17 |
Soft Wheat |
4.88 |
Sorghum |
5.44 |
For more information, contact the 680 KFEQ Farm Department.
816-233-8881.
China Passing on U.S. Soybeans, Purchasing from Brazil
China soybean processors are purchasing record volumes of Brazilian soybeans and cutting purchases of U.S. soybeans. U.S. soybeans face steep tariffs in China thanks to the ongoing tit-for-tat trade war between the U.S. and China. A Singapore-based trader told Reuters that China is “willing to pay higher prices for Brazilian beans than what domestic crushers are paying.” Brazil’s typical soybean export season ends in September, and the U.S. provides to the market through March. However, China is importing a record 14 million metric tons of Brazilian soybeans for arrival in October and November. In 2017, Brazil shipped just under nine million metric tons of soybeans to China in the final quarter, which was the previous record. Brazil is the world’s top soybean exporter and the United States is the second top exporter. U.S. farmers are harvesting an estimated record soybean crop this year, but China has purchased just a fraction of soybeans from the U.S. compared to its long-term average.
Cargill CEO Concerned with Long-Term Health of Ag in Trade Dispute
The CEO of Cargill says he is concerned with the long-term health of U.S. agriculture due to impacts from the U.S.-China trade dispute. Cargill CEO David McLennan told Bloomberg News a long-term dispute with China could squeeze the U.S. out as China turns to other sellers of soybeans, as the nation is doing now. Soybean prices are near the lowest levels in a decade as a result of the trade war and an expected record crop in the U.S. this fall. MacLennan of Cargill spoke with Chinese leaders over the summer who told him the country “wouldn’t back down.” He says speculatively, that means China will find alternative sources of supply, but concedes “price can drive a lot of different decisions.” Cargill is spending more time with lawmakers and government officials expressing desire to see a swift end to the trade war. MacLennan says Cargill recognizes the goal of the Trump administration to make trade more fair and balanced, but says “we just think there are other tactics that can be pursued to improve trade relations.”
U.S. Says Canada Not Making Needed NAFTA Concessions
U.S. Trade Representative Robert Lighthizer charges Canada is not making needed concessions to strike a deal on the North American Free Trade Agreement. As the U.S. ideal deadline will pass this weekend, the U.S. is gearing up to move forward with a Mexico-only agreement. Lighthizer said there was “some distance” between the two sides on issues such as access to Canada’s dairy market and how best to settle trade disputes, according to AgCanada. Lighthizer says the U.S. believes the concessions are “essential” to reaching an agreement. President Trump has demanded changes in NAFTA, including making dairy a top priority, asking for more market access to Canada, and an end to the Class 7 product dumping on the global market. The Trump administration says the text of a deal is needed by Saturday to allow the Mexican government to sign it before leaving office on November 30th.
Deadline Weekend Likely to Pass with Little Farm Bill, NAFTA Progress
The farm bill and the North American Free Trade Agreement seem certain not to meet the weekend deadline, leaving more uncertain times for agriculture. Negotiators were trying to reach an agreement on the farm bill this week, but the clock is all but out of time as the current bill expires Sunday. Monday means critical trade programs will not have funding, including the Market Access Program and the Foreign Market Development program, seen as key units of USDA given the current trade climate. Leaders of the farm bill conference committee met Wednesday and are not ready to offer an extension on the current farm bill. House Agriculture Committee chairman Mike Conaway says “the world didn’t stop turning” when previous farm bills expired without a new law in place. Conaway told Politico “putting this off makes no sense whatsoever,” adding “the decisions to be made are on the table.” Adding further uncertainty, the U.S. is likely to forge ahead with its handshake agreement with Mexico on NAFTA, leaving Canada behind, for now. Regarding NAFTA, dairy is one of the main holdups, as the U.S. wants better market access.
Wednesday’s Closing Grain Bids
September 26th, 2018
St Joseph |
|
Yellow Corn |
3.20 |
White Corn |
3.20 |
Soybeans |
7.60 – 7.77 |
LifeLine Foods |
3.31 |
|
|
|
Atchison |
|
Yellow Corn |
3.11 – 3.13 |
Soybeans |
7.63 |
Hard Wheat |
4.61 |
Soft Wheat |
4.42 |
|
|
|
Kansas City Truck Bids |
|
Yellow Corn |
3.18 – 3.21 |
White Corn |
3.61 – 3.65 |
Soybeans |
8.30 |
Hard Wheat |
5.21 |
Soft Wheat |
4.93 |
Sorghum |
5.41 |
For more information, contact the 680 KFEQ Farm Department.
816-233-8881.
AgGrad Announces 30 Under 30 Program
AgGrad has announced it is launching the first ever AgGrad 30 Under 30 program. This program was created to celebrate the up-and-comers and people that the agriculture community should know as the future influencers to watch in the agribusiness community and beyond. AgGrad’s 30 Under 30 are making an impact through their contributions in their career, community, and to the industry at large. “We are very excited to shine the spotlight on the young professionals shaping the future of agriculture,” says Tim Hammerich, Founder of AgGrad. “The individuals that will be recognized through this program are at the forefront of agriculture and will one day be the leaders in agribusiness, research, advocacy, entrepreneurship and production.” The winners will be announced March 2019 on AgGrad’s social media channels and featured in a special print and online publication. To nominate someone for AgGrad’s 30 Under 30, visit 30under30.ag
Updated KORUS Protects Current Market Share
The new KORUS agreement offers a sigh of relief for U.S. beef and pork. The U.S. Meat Export Federation says the market access terms secured in the original KORUS not only helped increase U.S. red meat’s market share in South Korea, but also bolstered consumption by making U.S. beef and pork products more affordable and accessible to Korean consumers. Those terms are maintained in the new agreement, as a USDA official noted “nothing has changed” for agriculture. U.S. red meat exports to Korea set a record last year of $1.7 billion, up 19 percent year-over-year and up 69 percent from 2012, when KORUS entered into force. The trend continues this year with both U.S. beef and pork export value increasing more than 50 percent compared to a year ago. The United States is the largest supplier of beef to Korea and trails only the European Union as the second-largest pork supplier. Korea is now the second-largest value market for U.S. beef and fourth-largest for U.S. pork.