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Trade progress with China offers hope for U.S. corn, soybean markets

A market analyst is encouraged by recent steps by the U.S. and China to ease trade tensions.

U.S. Commodities president Don Roose says both countries seem ready to roll back tariffs.

“The U.S. is looking to take off the 10 percent tariffs against fentanyl with China, at the same time China is looking at a reciprocal reduction of 10 percent on U.S. grain imports. So the bottom line, I think it’s a demand boost.”

In May the White House announced China had committed to purchase at least $17 billion annually in U.S. agricultural products through 2028.

Roose tells Brownfield.

“I think what it opens up is a quicker path towards starting to make us more competitive, a quicker path towards China buying that prorated 17 million metric tons of corn by the end of the year and the next few years going forward.”

He says recent Chinese purchases are helping support U.S. corn and soybean prices.