News

Signing of phase one trade agreement is set for Wednesday

The signing of the phase one trade agreement between China and U.S. is scheduled to take place at the White House on Wednesday.

Treasury Secretary Steve Mnuchin says details of the agreement will be released after it is signed.  Mnuchin told reporters it’s a very extensive agreement.

“Phase one is very significant. It includes very significant components of changes to technology issues, intellectual property issues, and 50 billion dollars of purchases for our farmers,” Mnuchin said.

However, some analysts question whether China will be able to reach that level of agricultural purchases. Chinese soybean demand will likely fall because of African Swine Fever. Plus, U.S. soybean exporters continue to face strong competition from Brazil, which is expected to harvest another record soybean crop.

In addition, hopes for increased corn and ethanol exports have dimmed after reports that China has suspended its plan to implement an E10 ethanol mandate.