Trade
The U.S. and China have reportedly made “progress” and agreed to stabilize their relationship, but no major breakthroughs were outlined during the two-day meeting between U.S. and China high-ranking officials.
Over the 29 years of free trade, U.S. ag exports to Mexico increased both in terms of volume and value, although there were some years where growth was not positive.
Sluggish exports continue to be the main theme in the grain markets with USDA cutting both old and new crop ending stocks. Arlan Suderman of StoneX Group says the bigger story moving forward might be soft corn demand.
Mexico claims because it is self-sufficient in GMO corn for food, it has not violated any trade agreements. Given the firm stances of both countries, it appears this situation will lead to a USMCA dispute settlement.
China’s exports to Russia reached a record high in April, amounting to $9.6 billion.
Last week was full of both bullish and bearish news for the wheat market. Arlan Suderman of Stone X Group says there are still several things that could spark momentum in the wheat market.
The Ukraine Black Sea grain deal has been extended for two more months, one day before Russia could have quit the pact over obstacles to its grain and fertilizer exports.
“If California were to win this Supreme Court case, there’s nothing stopping the state from saying, for example, you can only sell corn in California if it’s harvested with an electric combine,” says Dillard.
Grain farmers might have started their Cinco de Mayo celebration early on Friday, with grain prices seeing some big gains.
Exports rose 2.1% in March from the prior month to a seasonally adjusted $256.2 billion while imports declined 0.3% to $320.4 billion, the Commerce Department said.
This blog summarizes the 60-plus year history of the European’s Common Agricultural Policy, from its launch as a system set up to protect producers in six European countries to today’s 27-member EU exporting behemoth.
In April 2017, Ray Starling, Special Assistant to the President for Ag, Trade and Food Assistance during the Trump administration, received some important news. What happened next helped change the course of history.
Currently, foreign meat that is processed in U.S. plants can be labeled “Product of USA.” Arun Alexander, Canada’s deputy ambassador, isn’t convinced this is a good practice.
Some 44% of U.S. soybean oil will go to biofuels during the current marketing year, said the monthly WASDE report. Two years ago, the biofuel share of soyoil consumption was 37%.
Several grain companies announced plans to stop Russian grain exports as of July 1. As Russia tries to take control of its domestic grain industry, analysts think it will ultimately hurt Russian grain farmers.
According to researchers at Ohio State University, most U.S. states will experience a “limited effect” of the dispute in the short term. But the long-term could significantly impact states such as Illinois.
Non-tariff barriers “are real and can be more significant hurdles than tariffs,” U.S. Trade Representative Katherine Tai says.
While Tai has faced strong criticism about a lack of new trade agreements being pursued, she claimed this week that the U.S. is “nearing a consensus on the need to do things differently.”
The Office of the U.S. Trade Representative’s latest report shows top U.S. wheat importers could see a shake-up if trade barriers aren’t addressed.
Exports of U.S. ethanol could increase by over 80 million gallons annually, representing an additional $150-200 million in exports each year.
Iowa Senator encourages U.S. Trade Representative Katherine Tai to move toward instituting USMCA dispute settlement process.
Sluggish corn demand in the U.S. has been the concern for months. This past week, demand got a big boost, with USDA reporting daily flash sales from China. Since March 9, those sales total 83.1 million bushels.
Former President Donald Trump placed tariffs on more than $300 billion in Chinese goods during his presidency, raising costs for American companies, according to the ITC.
“It would be a lost opportunity if we just sit on the sidelines and watch other countries engage while the playing field continues to tilt against us,” said Rep. Smith (R-Neb.).
ASA CEO: Renewable Diesel Could Drive a New Era for Soybean Demand, But EPA Needs to Rethink the RFS
ASA policy priorities during Commodity Classic focus on everything from the Farm Bill to EPA’s recent Renewable Fuels Standard (RFS) proposal, while also pushing for increased market access through trade.
Russia badly needs to replace expended and outdated Soviet arms while China needs Russian energy. That is compelling math. This is bad news not just for the heroic people of Ukraine, but Europe and the US.
By requesting consultations, the U.S. Trade Representative began a process to come to a settlement on ag biotechnology imports to Mexico. If a settlement is not reached, the issue will move to a full-blown trade dispute.
“When Ukraine fails, in terms of their ability to produce agricultural products, the world becomes less safe,” says Howard Buffett, global philanthropist and Illinois farmer.
Russia is now saying it will only extend its Black Sea grain deal if sanctions are lifted on its own agricultural products. The deal, which was brokered last year, allowed for safe passage of Ukrainian ag products.
Morocco is sitting on 75-85% of proven global phosphate reserves, but projections of phosphate depletion span from 50 to 300 years. John Phipps explains why the concerns about peak phosphate production may be overblown.