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Questions remain over China’s $17 billion U.S. ag purchase commitment

Questions remain about China’s ag purchase commitments as the U.S. and China meet tomorrow.

“You never know in these high level discussions what you’ll walk out with.” says Justin Benavidez, the chief economist at the USDA.

Benavidez says China has been making progress on its 25 million metric ton soybean commitment, but what’s happening with the $17 billion in extra ag product purchases is unclear.

He says China’s relisting of U.S. beef plants for export is a positive development for trade barriers.

“Now, they’ve obviously put in place some tariff rate quota thresholds that are pretty aggressive and might, in turn, keep us out of the marketplace, to some extent, for beef exports. But I think the relisting of the plants was a positive, overall, story for beef.”

Seth Meyer with the University of Missouri’s Food and Ag Policy Research Institute says there’s still uncertainty about what products will make up those additional purchases.

“Is it other meats, is it ethanol, what counts under this, and how close will we get to that?” asks Meyer.

President Donald Trump and Chinese President Xi Jinping are scheduled to meet on Thursday.

Benavidez and Meyer were part of the Ag Outlook Forum, sponsored by the Ag Business Council of Kansas City and Agri-Pulse, in Kansas City, Missouri this week.