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Market analyst watching China closely as geopolitics could influence commodity prices

A senior market advisor with Total Farm Marketing says the market is closely watching China’s reaction to recent geopolitical events.

Naomi Blohm says the country continues to have a strong influence on international trade flows.

“With the activities in the Middle East and the activities that happened a few weeks back in Venezuela, we’re really trying to cripple China’s access to crude oil in the sense that it will make them come to the negotiating table to trade with the United States,” she says. 

President Trump is set to meet with President Xi at the end of the month to further discuss the details surrounding the U.S. and China trade agreement.

She tells Brownfield China is ramping up its domestic production to prioritize national food security, but…

“The Chinese economy since COVID has really struggled to get back up and running to the pace that they want it to be,” she says. “China does need the U.S. as a trading partner, but we’re going to see exactly how quickly they need us and when.”

Blohm says the politics in China continue to drive U.S. ag purchases and she’s optimistic finalizing a trade deal could bring a boost to commodity prices.

AUDIO: Naomi Blohm, Total Farm Marketing