Vietnam

Scott Varilek of Kooima Kooima Varilek says cattle futures are trading higher building on Wednesday’s big reversal which was initially triggered by trade news but then better than expected cash trade added to the rally. Grains are also higher on hopes of an announced deal with China.

Oliver Sloup, Blue Line Futures, says it was a combination of short covering and technical buying heading into a long holiday weekend but the announcement of a trade deal with Vietnam also provided a spark.

The deal, according to President Trump, allows the U.S. “total access” to Vietnam’s markets with a zero tariff on U.S. products exported to Vietnam.

Vietnam has a 100 million people and a growing middle class looking to add protein to their diet. With limited soybean crushing capacity, the country currently depends on soybean meal imports for their livestock and aquaculture feed needs.

On a recent trade mission to Vietnam, South Dakota farmers found out the tariffs being proposed by the Trump administration are a huge concern for exporters.

The classification would have boosted exports and reduced tariffs on goods from country that is rising supply chain alternative to China.

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