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China delayed some soybean purchases ahead of Trump-Xi meeting

A markets expert is hopeful trade talks can get back on track when President Donald Trump talks with China’s President Xi Jinping later this week.

John Baize is a commodities expert and consultant for the U.S. Soybean Export Council. He says, “I think the best we can expect at this point is a resumption of the negotiations that were ongoing when it broke down here last month.”

Baize tells Brownfield there’s evidence China would like to solve the trade disputes and that Trump is under pressure in some areas to make a deal.  Baize says there is a change in market activity ahead of the Trump-Xi meeting at the G20 in Japan. “What I’ve seen is, number one, in China, there was a back-off of purchasing of soybeans last week because I think people in China hope there is an agreement, which means that they won’t be buying South American beans. They can buy cheaper U.S. soybeans.” Baize says U.S. beans are about 20-dollars a ton cheaper than Brazilian beans right now.

Trade talks between the U.S. and China broke down in May, and the U.S. levied another 200-billion in tariffs on Chinese imports.  Trump is still considering 25% tariffs on an additional 300-billion in Chinese goods.

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