U.S.-China tensions ratchet higher, but analyst expects ag purchases to continue
July 22, 2020 By Ken Anderson Filed Under: News
China is vowing to retaliate after the U.S. ordered the closure of its consulate in Houston, a move that has further increased tensions between the two countries.
But market analyst Arlan Suderman with StoneX says his contacts in China do not think it will affect Chinese purchases of U.S. ag products.
“We do not feel like this is at the point of cutting off
trade with China,” Suderman says. “We believe that China will continue to buy
when prices are cheap—and currently they see U.S. corn and soybean prices as
cheap, from a historical standpoint.”
right now, Suderman says, the Chinese need U.S. soybeans, “to help bridge the
gap until the South American harvest starts early next year.”
Meanwhile, China’s latest U.S. soybean buying spree continued today with USDA reporting new sales totaling 715-thousand tons.
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