SCEPTICISM IS trailing the recent agreement between the United States of America and Peoples Republic of China that china would increase its purchase of US grains and soybeans while US would reportedly cancel tariffs.
Though the agreement is slated to take off on Tuesday, the fortune of Soybeans and grains were little changed overnight as hedgers and investors await more news from the partial trade agreement between the U.S. and China.
According to agriculture.com “the countries – the world’s two largest economies – last week came to the agreement under which the U.S. would reportedly cancel tariffs that were scheduled to go into effect on Tuesday and China would increase purchases of agricultural products.
“Treasury Secretary Steven Mnuchin, who has been a key player in negotiations along with U.S. Trade Representative Robert Lighthizer, said the Asian nation would increase agriculture purchases to $40 billion to $50 billion, Reuters reported.
“The U.S. shipped $24 billion in ag products to China in 2017.
“Still, there’s scepticism that China will follow through with the promised purchases, and even Chinese state media said the sides have agreed on fundamental issues but still need to actually sign an agreement”.
“The Champagne should probably be kept on ice, at least until the two presidents put pen to paper,” China Daily, the state-owned English newspaper said.
Soybean futures for November delivery rose ¼¢ to $9.36¼ a bushel overnight on the Chicago Board of Trade. Soy meal rose 10¢ to $310.90 a short ton, while soybean oil fell 0.1¢ to 29.87¢ a pound.
Corn futures for December delivery fell 1½¢ to $3.96¼ a bushel overnight.