US farmers push for China commitments on imports as Trump and Xi talk trade
DBA•Analysts expect China to reaffirm commitments to buy 25 million metric tons of US soybeans annually, but say new deals are unlikely. China’s pledge to import $17 billion in US farm goods each year is less certain.
1. Farm trade on agenda
US farmers want China to buy more American soybeans and other agricultural products and ease retaliatory tariffs as President Donald Trump and President Xi Jinping discuss trade. Analysts expect the leaders to recommit to earlier crop purchase targets but say new deals are unlikely.
2. Purchase pledges vary
The United States Department of Agriculture had confirmed nearly 10 million metric tons of soybean sales to China from this year’s crop as of September 10. Traders and analysts believe China accounts for at least half of another 6 million tons of sales reported to undisclosed destinations. China has not bought US corn for the current season, and its pledge to import $17 billion in US grains, meat and other farm goods annually is less certain than its 25-million-ton annual soybean commitment.
3. Tariffs remain a hurdle
China’s 10% retaliatory tariff on US soybeans and other farm goods remains in place. State-run importers returned to the US soybean market this summer, but private Chinese companies have avoided US cargoes because of the tariff. US farm groups are also urging Trump to secure a commitment for China to buy 5 million to 7 million metric tons of US sorghum annually.
