U.S., China Wrap Up Trade Talks with No Deal
U.S. and Chinese officials wrapped up trade talks with no deal. However, there wasn’t any breakdown in talks, even as the U.S. Trade Representative moved forward on raising import tariffs from 10 to 25 percent on $200 billion in Chinese goods. Farmers and agricultural organizations across the country are very concerned about the move. The National Association of Wheat Growers, the American Soybean Association, and the National Corn Growers Association were hoping a deal would be in place by March first, right before farmers started back into their fields. Instead, the trade war with China is escalating. Lynn Chrisp, Corn Growers President, says corn farmers are watching the tariff battle as many can’t even get into fields to plant this year’s crop due to wet weather. Richard Guebert Jr., President of the Illinois Farm Bureau, says there is deep concern over the impact of added tariffs. The Trump Administration says China has 3-4 weeks to come to an agreement or face $325 billion in tariffs on items currently not covered by duties.
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More Trade Assistance for Farmers Coming?
U.S. Ag Secretary Sonny Perdue is in Japan this week, talking with officials from America’s fourth-largest agricultural customer. In a Twitter post, the secretary says he was on the phone with President Trump and discussed the increase in tariffs on $200 billion in Chinese imports and the negative impact it will have on farmers. Beijing has promised to retaliate in kind.
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Latest WASDE Report Calling for Fewer Soybeans, More Corn Production
This month’s World Agriculture Supply and Demand Estimate Report is calling for higher corn production, lower soybeans, and a slight jump in wheat production. The corn crop is projected at 15 billion bushels, up from last year and the second-highest on record. Lower exports will mean higher ending stocks, with total corn supplies at a record-high of 17.2 billion bushels. The season-average farm price for corn is projected to be $3.30 a bushel. The U.S. soybean crop is projected at 4.15 million bushels, 394 million lower than last year. U.S. export share is expected to rise to 35 percent from the record low of 32 percent because of higher supplies and competitive prices. Soybean ending stocks are projected at 970 million bushels, a drop of 25 million. The season-average price for soybeans is projected at $8.10 a bushel. The U.S. wheat crop is projected to be 1.897 million bushels, up less than one percent from last year. Wheat supplies are increased by 41 million bushels because of higher carry-in stocks and larger production. The projected season-average price is $4.70 a bushel.
