Brad Kooima talks about the six plus hour NCBA Live Cattle Marketing Committee meeting during the NCBA summer business meeting. He talks on the compromise and how ti will effect the cattle producer. At times the vote was so close they didn’t know which way it would go to represent the cattle industry.
Restrict expanded limits?
Why are markets not reflecting realty with the grain trade?
StoneX on yield information released this week-how are producers reacting?
Dakota Pipeline will not get shutdown while the case is heard-good for grain
Lebanon explosion and the need for grains…port issues due to the explosion
Hog prices are stagnate
Cattle prices continue to trend higher
USDA Secretary Sonny Perdue says the European Union’s recently-published EU “Green Deal” strategies could “undermine trade and affect the viability of EU farmers.” Perdue’s claim was immediately refuted by his EU counterpart. Euractive.com says Perdue spoke during a webinar on the transatlantic perspective on food security in a post-COVID world last week.
Perdue commended the EU for focusing on sustainability and expressed a strong desire to work with the European Union. However, he criticized the new food policy, which he says, “seems to have forgotten the ‘farm’ in ‘Farm to Fork.’” The EU says the new Farm to Fork policy is intended to improve the sustainability of agriculture within the bloc and shorten the distance between the farm and the end-user.
Together with the new biodiversity plan, those two policies make up the heart of the EU Green Deal. Perdue also says EU farmers were being left without the tools they need to do their jobs, warning that it could make farmers there uncompetitive. If that happens, it could then lead to EU protectionism, something that could “do some real damage to the global trade environment.” However, the EU Ag Commissioner says the emphasis on reinforcing shorter supply chains doesn’t imply any new trade barriers, adding that the bloc “isn’t against and needs international trade.”
We know we started the week with a 10th day in a row of grain purchases, saw a slowdown and then a ramp up to finish the week. Clay Patton talks with Jeff Peterson of Heartland Farm Partners.
China & a somber note with the Consultant in Houston
China did and another make purchases of soybeans
Cash trade Chinese buyers looking at corn & wheat
Growing amount of evidence their temp reserve is almost empty
Gasoline consumption took another drop
Restaurants continue to shut down after reopening
Brad Kooima with Kooima, Kooima & Varilek explains this week’s cattle market activity in this weeks Cattle Call.
Topics: – Cash market one of the majors has made some large purchases – Receiving fund interest – Promising COVID vaccine might have been the lift in the market for cattle – Boxes could still move lower – JBS & COVID Concerns
A Reuters report says China made the biggest purchase of U.S. corn in history on Tuesday. It’s the second massive deal that China has made for corn in less than a week.
The Asian nation made the buy in an attempt to meet its commitments in the Phase One trade deal with the U.S., even as tensions rise between Washington, D.C., and China. The USDA says private exporters report that China bought 1.76 million tons of corn for shipment during the 2020-2021 marketing year that starts on September 1st.
The sale passed the previous record of a one-day corn sale to China that totaled 1.45 million tons in December of 1994. The deal followed a sale of 1.365 million tons to China on July 10th, a deal that was spread out over two marketing years.
Last week, China increased its corn and soybean import forecasts for the current season as the country expects to step up its agricultural purchases from the United States. China also booked deals to buy 129,000 tons of soybeans in the 2020-2021 marketing year. Beijing agreed to buy $80 billion worth of U.S. ag products over the next two years in the Phase One trade deal between the two countries.
President Donald Trump recently told reporters a Phase Two agreement with China is not likely. The President said aboard Air Force One last week, “I don’t think about that,” adding, “The relationship with China has been severely damaged.”
Bloomberg News reports the Trump administration continues to pressure China over the COVID-19 outbreak, alleging a cover-up by China, among other things. Regarding his relationship with China, Trump says, “They could have stopped the plague, they didn’t,” referring to the COVID-19 pandemic.
The Phase One agreement included $200 billion of U.S. agriculture exports over two years. However, trade analysts say China isn’t purchasing at a pace to reach that level yet, and some say the level of purchases needed to meet the total is unattainable.
Last month, state-owned companies in China suspended purchases from the United States over political issues. Also last month, Trump said the Phase One agreement was “fully intact,” the same day adviser Peter Navarro said it was effectively dead.
A total of 50 members of Congress sent a bipartisan letter to U.S. Trade Representative Robert Lighthizer this week, urging him to work swiftly on a Phase Two Agreement with Japan.
The letter was also sent to Ag Secretary Sonny Perdue. They say the recent Phase One agreement with Japan made progress on several important issues, but American farmers and processors remain at a disadvantage against competitors, thanks to the Japan-European Union and the Comprehensive Progressive Agreement for Trans-Pacific Partnership agreements.
That’s why Wisconsin Representative Ron Kind and his colleagues are asking Lighthizer and Perdue to maximize opportunities for dairy farmers by addressing these remaining gaps and inequalities in market access during the next round of negotiations. Due to depressed milk prices and a suffering rural economy, dairy farmers are facing tough conditions and struggling to stay afloat.
The USDA says 6,000 dairy farms have gone out of business over the last several years, underscoring the need for trade agreements that can expand overseas markets for the U.S. dairy industry. The letter also points out that Japan is one of the top five overseas markets for U.S. dairy products and the demand will only continue to grow.
The United States and Kenya began trade negotiations Wednesday, seeking to enter a free trade agreement. The U.S. Chamber of Commerce applauded the progress, saying a deal could “strengthen and deepen our relationships with economies across the continent” of Africa.
Kenya is included in the African Growth and Opportunity Act, which is set to expire in 2025. The U.S. Chamber says a Kenya free trade agreement will provide American businesses the certainty they need to continue investing in the growing market. Agriculture goals for the U.S. include securing full market access for U.S. agricultural goods in Kenya by reducing or eliminating tariffs.
Further, the U.S. seeks to eliminate practices that unfairly decrease U.S. market access opportunities or distort agricultural markets for the United States. In 2018, U.S. total exports of agricultural products to Kenya totaled $37 million. Leading domestic export categories were $10 million of coarse grains, $6 million of wheat and $5 million of pulse crops.