Headlines:
- White House is having ‘a lot of communication with the Chinese government at all levels’ ahead of critical Trump-Xi meeting at G-20
The Trump administration has restarted talks with the Chinese government “at all levels” ahead of a high-stakes meeting between President Donald Trump and Chinese President Xi Jinping this week, top White House economic advisor Larry Kudlow said Tuesday. The heads of the world’s two largest economies are set to meet on the sidelines of the G-20 summit in Argentina, where world leaders will convene on Friday and Saturday. Trump and Xi will talk trade as a mounting series of tariffs levied by Washington and Beijing contribute to concerns about slowing global economic growth. The two leaders will have dinner on Saturday. Washington and Beijing have re-engaged about a path toward a trade agreement, and the summit offers “an opportunity to break through what has been disappointing discussions” in recent months, Kudlow told reporters on Tuesday. At the G-20, Trump will focus on issues including alleged Chinese theft of intellectual property, ownership of American companies in China and tariffs and non-tariff barriers, the National Economic Council director said.
- Crop Drop: China Swine Fever Outbreak to Curb its Soybean Imports
China’s imports of soybeans are set to drop as an outbreak of African swine fever hits its huge pig herd and saps demand for the animal feed ingredient, making it easier for buyers to keep shunning U.S. cargoes amid the Sino-U.S. trade war. African swine fever, deadly to pigs but not harmful to people, has spread rapidly through China, with more than 70 cases reported across farms since early August. That and already large soy inventories are curbing appetite for beans in what is by far the world’s biggest importer of the commodity, traders and analysts said, meaning buyers are unlikely to need to return to importing U.S. crops anytime soon. “Had it not been for the swine fever, China would have faced a shortage of beans early next year,” said a Beijing-based executive at an international trading company. “Now it seems that soybean processors will be able to do without U.S. beans,” he added, declining to be identified as he was not authorized to speak with media. Washington and Beijing have been locked in a trade war, with soybeans one of the commodities at the heart of the conflict. After imposing retaliatory tariffs on U.S. soybean imports, China has been taking mainly Brazilian beans, threatening to leave a bumper U.S. harvest piled up in storage or rotting in fields.
Summary:
The corn market was up and down on the day settling unchanged at the close. The last USDA crop progress report showed corn at 94% harvested which was 2% points behind the 5-year average. It was also announced that Algeria bought 120k metric tons of corn from Argentina for December shipment. Soybean futures recovered after yesterday’s fears of no trade resolution largely on reports of that US and Chinese officials are having trade discussions in preparation to the G20 summit set to happen on Friday and Saturday (November 30th& December 1st). According to the President, there is still the possibility of him implementing the remaining $267 billion worth of tariffs on China if there is no positive plan made. Soybean crop progress showed harvest at 94% complete. Wheat futures fell back giving up most of the gains from yesterday. The Ukraine reported that their grain exports are moving at routine pace amidst the conflict between them and Russia in the Black Sea. Winter wheat planting fell 4% behind last year coming in at 95% planted. Winter wheat conditions fell 1% to 55% in the good to excellent category breaking away from three weeks of improvements.
