A Truce With China?
Sunday evening I checked the grain markets to see if there was any news about the meeting at the G 20 Summit between President Trump and the President of China. Corn was up around 4 cents and beans were up 20 cents a bushel. I assumed there was good news about the trade war. This morning I read that we did not necessarily have a deal or an end to the trade war, but a 90 day truce.
Talking with Gordy from Chiodo Trading on the air not a lot of details are known. It sounds like maybe there is an agreement to agree. Plus, no more tariffs will be put on trade and China has agreed to purchase a certain amount of agricultural products. However, how much is not known either.
What we do know is that last week there was an announcement that China had purchased a lot of pork from the United States. Some for December and a lot more for January. We also know that China needs a lot of beans and it will be at least two to three months before any will be available from South America. Personally I don't think the trade war is over yet. However a truce is better than more tariffs!