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China Tariff Deadline Extended, More Talks Expected

President Trump has delayed additional tariffs on China with more talks expected. Trump extended the March 1 deadline to allow for talks to continue as China also announced an additional 10 million metric ton purchase intention of U.S. soybeans. China proposed last week in talks to increase purchases of U.S. commodities by $30 billion a year more than pre-trade war levels.

President Trump reported over the weekend that the U.S. “has made substantial progress” in talks with China, in announcing he would postpone the planned tariff rate hike, which also served as the negotiating deadline. Tariffs Hurt the Heartland, a nationwide campaign formed when the trade war began, called the announced encouraging, calling for a solution “as soon as possible that ends the tariff uncertainty” and “improves the U.S.-China trading relationship.”

The group contends that tariffs are “ultimately taxes paid by American businesses.” President Trump says he and China’s President will plan a Summit in the U.S. to conclude an agreement if both sides make additional progress.

Report: Kansas winter wheat doing well amid wet month

WICHITA, Kan. (AP) — A government report shows Kansas winter wheat is doing well with an abundance of moisture this month.

Snow covers a central-Kansas wheat field

The National Agricultural Statistics Service reported Monday that 97 percent of the state had adequate to surplus topsoil moisture conditions. About 98 percent of the state had adequate to surplus subsoil moisture.

The agency rated the Kansas winter wheat as 9 percent poor to very poor, 40 percent as fair, and 51 percent as good to excellent.

Monday’s Closing Grain Bids

February 25th, 2019

 

St Joseph

 

Yellow Corn

3.60

White Corn

no bid

Soybeans

8.60 – 8.62

LifeLine Foods

3.70

 

 

Atchison

Yellow Corn

 3.68 – 3.75

Soybeans

 8.61

Hard Wheat

 4.02

Soft Wheat

 4.16

 

 

Kansas City Truck Bids

Yellow Corn

3.58 – 3.76

White Corn

3.90 – 3.99

Soybeans

8.67 – 8.82

Hard Wheat

4.32 – 4.67

Soft Wheat

 4.42

Sorghum

5.90 – 5.99


USDA Cash Grain Prices

For more information, contact the 680 KFEQ Farm Department.
816-233-8881.

Milk Producers File Petition Over Label Issue

The National Milk Producers Federation last week filed a citizen petition with the U.S. Food and Drug Administration, outlining a labeling solution to the use of dairy terms on non-dairy products as the agency considers public input from a recently concluded comment period. The petition reinforces current FDA labeling regulations, with some additional clarification, to show how marketplace transparency can be enhanced and consumer harm from confusion over nutritional content can be reduced, according to NMPF. Federation Executive Vice President Tom Balmer says the petitions “lays out a constructive solution to the false and misleading labeling practices existing in the marketplace today.” In its petition, NMPF urges FDA Commissioner Scott Gottlieb to “Take prompt enforcement action against misbranded non-dairy foods that substitute for and resemble reference standardized dairy foods.” The petition also points to long-standing rules that provide for using the words “substitute” or “alternative” in conjunction with a dairy term when such products are deemed nutritionally equivalent to the dairy products they reference.

U.S., Canada and Mexico Taking Measures to Prevent Swine Fever Spread

The United States, Canada and Mexico are seeking measures to prevent the spread of African swine fever to North America. Agriculture Secretary Sonny Perdue told Reuters “it’s important that we function together as one,” in speaking on the effort to keep the disease from spreading. African swine fever has spread through China’s hog populations and parts of Europe, sparking fear of further spread globally. Market analysts say if the disease spreads to the United States, it could curb shipments in the $6.5 billion export market for American pork. The highly contagious disease can cause death for hogs in just two days. The disease is not harmful to humans, but there is no vaccine for hogs and transmission of the disease can occur easily through contact between animals, or through contaminated feed, and even humans traveling from a contaminated site to an uncontaminated site.

Midwest Governor Skeptical EPA will Meet E15 Deadline

The Trump administration has pledged to finish a proposal allowing year-round E15 sales by the summer driving season, but one Midwestern governor is skeptical. Nebraska Governor Pete Rickets told Bloomberg News he doesn’t expect the rule to be finished by Memorial Day, when the summer driving season begins. The Environmental Protection Agency is working quickly to move the proposal, yet to be released and delayed by the government shutdown. The proposal would eliminate barriers that prohibit year-round sales of E15 fuels, gasoline containing 15 percent ethanol. Ricketts applauded the E15 move when it was announced in October, as the proposal would boost ethanol consumption at a time of stale margins for the ethanol industry. Ricketts told Bloomberg News he spoke with EPA Acting Administrator Andrew Wheeler about three weeks ago to encourage him to get the E15 change “done as quickly as possible.” The regulatory process including publishing of the rule and comment period can take four to five months.

Trump extends China tariff deadline, cites progress in talks

WASHINGTON (AP) — President Donald Trump said Sunday he will extend a deadline to escalate tariffs on Chinese imports, citing “substantial progress” in weekend talks between the two countries.

Trump tweeted that there had been “productive talks” on some of the difficult issues dividing the U.S. and China, adding that “I will be delaying the U.S. increase in tariffs now scheduled for March 1.”

Trump said that if negotiations progress, he will meet with Chinese President Xi Jinping at his Florida resort to finalize an agreement.

U.S. and Chinese negotiators met through the weekend as they seek to resolve a trade war that’s rattled financial markets.

Trump had warned he would escalate the tariffs he has imposed on $200 billion in Chinese imports, from 10 to 25 percent, if the two sides failed to reach a deal. The increase was scheduled to take effect at 12:01 a.m. EST on March 2.

Speaking to governors gathered at the White House for an annual black-tie ball Sunday, Trump said he was doing “very well” with China.

“If all works well we’re going to have some very big news over the next week or two,” he said, though he took care to add that “we still have a little ways to go.”

Asian stock markets rose following Trump’s announcement, but gains were modest. Share prices already had risen in recent weeks in expectation Trump would postpone the tariff hike.

The Shanghai Composite Index rose 2.4 percent while Tokyo’s benchmark Nikkei 225 index gained 0.7 percent.

The world’s two biggest economies have been locked in a conflict over U.S. allegations that China steals technology and forces foreign companies to hand over trade secrets in an aggressive push to challenge American technological dominance.

The two countries have slapped import taxes on hundreds of billions of dollars of each other’s goods. The conflict has unnerved investors and clouded the outlook for the global economy, putting pressure on Trump and Xi to reach a deal.

Chinese negotiators said the talks made progress on technology transfer, protection of intellectual property rights and non-tariff barriers, according to the official Xinhua News Agency. It cautioned there are “still some differences that need more time to be ironed out.”

“Trump clearly wants a deal and so do the Chinese, which certainly raises the probability that the two sides will come to some sort of negotiated agreement, even if it is a partial one, in the coming weeks,” said Cornell University economist Eswar Prasad, former head of the International Monetary Fund’s China division.

On Twitter, Trump said the two sides had made headway on issues including protection of trade secrets, forced technology transfer and U.S. agricultural sales to China. But the administration did not immediately provide details.

Business groups and lawmakers in Congress want to see a comprehensive deal that forces the Chinese to change their behavior and that can be enforced. The U.S. has accused China of failing to meet past commitments to reform its economic policies.

“Encouraging news from @POTUS that progress is being made in a trade deal with China. Hopefully this leads to an agreement that stops China’s theft of US intellectual property and avoids a full blown trade war,” tweeted Republican Sen. Pat Toomey of Pennsylvania

But critics worry the president has given up leverage.

“They now have lost the advantage of a deadline,” said Philip Levy, a senior fellow at the Chicago Council on Global Affairs and a White House economist under President George W. Bush. “I see the odds tilting” in China’s favor, Levy said.

Friday’s Closing Grain Bids

February 22nd, 2019

 

St Joseph

 

Yellow Corn

3.65

White Corn

no bid

Soybeans

8.60

LifeLine Foods

3.74

 

 

Atchison

Yellow Corn

 3.72 – 3.80

Soybeans

 8.60

Hard Wheat

 4.18

Soft Wheat

 4.36

 

 

Kansas City Truck Bids

Yellow Corn

3.62 – 3.80

White Corn

3.95 – 3.98

Soybeans

8.60 – 8.80

Hard Wheat

4.49 – 4.80

Soft Wheat

 4.62

Sorghum

6.08


USDA Cash Grain Prices

For more information, contact the 680 KFEQ Farm Department.
816-233-8881.

Gene Editing Development Stalled; NPPC Renews Call for USDA Oversight

The National Pork Producers Federation is urging the Department of Agriculture to assume regulatory oversight of gene editing for livestock. The call from NPPC follows the slow pace of developing a regulatory framework at the Food and Drug Administration. NPPC says the process is “stalled” at FDA, and that “USDA is best equipped to oversee gene editing for livestock production” according to NPPC President Jim Heimerl (Hi’-merle). NPPC says gene editing accelerates genetic improvements that could be realized over long periods of time through breeding. For example, it allows for simple changes in a pig’s native genetic structure without introducing genes from another species. Emerging applications for the pork industry include raising pigs resistant to Porcine Reproductive and Respiratory Syndrome, a highly contagious swine disease that causes significant animal suffering and costs pork producers worldwide billions of dollars. Despite no statutory requirement, the FDA currently holds regulatory authority over gene editing in food-producing animals.

USDA Expects Exports to Fall $1.9 Billion in 2019, Pending Trade Agreements

The Department of Agriculture is projecting a $1.9 billion drop in exports this year, led by a decline in trade with China. While talks remain ongoing between China and the United States, USDA during its 95th annual Agricultural Outlook Forum Thursday predicted 2019 fiscal year exports at $141.5 billion. USDA Chief Economist Robert Johansson told attendees China is expected to fall from the top market for U.S. exports in 2017, to the fifth largest market in 2019, pending the outcome of trade talks. The U.S. so far in 2019 has exported 13.5 million metric tons less of soybeans than the same time last year, according to Reuters. Meanwhile, USDA is forecasting record milk and animal protein production. USDA also predicts soybean plantings will decline this year as corn plantings increase. Corn plantings for the year are predicted at 92 million acres, up 3.3 percent from 2018, and soybean plantings are predicted at 85 million acres, down 4.7 percent from last year.

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