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Grain market loses interest in trade deals for now

The U.S. has slowed in its progress of getting 90 trade deals in 90 days and a market analyst says the grain markets have lost some interest in the short-term.

Don Roose with U.S. Commodities tells Brownfield “with President Trump so far, we think the tariffs and dates are a moving target. I wouldn’t be surprised if a lot of these negotiations aren’t completed until the fall.”

On Thursday, President Trump said a recent call between the U.S. and China was positive and both countries will meet again shortly. Roose says the grain markets really didn’t respond to the news and it might be a similar situation as the U.S. and India meet.

“It seems like the big players we’re trying to get some solid negotiations with keep pushing us down the road.”

Roose says trade frameworks are viewed by some analysts as mini embargoes.

“We’ve got uncertainty so that pushes U.S. buyers to search around and look for other alliances,” he says. “We think negotiations are going on with other countries. We see that, particularly China is getting a very close alliance with Brazil.”

Roose says until more details are known about the trade negotiations, the grain markets are trading seasonal patterns, including weather.