The signing of the Phase 1 trade deal with China and approval in the Senate of the USMCA last week saw two positive developments on the trade front. Despite some resolution on these trade issues, markets reacted negatively. The USMCA, while providing stability with two major trading partners, held limited short-term upside potential for corn […]
Bloomberg writers Mike Dorning and Michael Hirtzer reported last week that, “President Donald Trump’s phase-one trade deal with China offers the promise of more overseas sales for American farmers, but the impact of the agreement remains unclear. “Trump has promoted a commitment by China to purchase $40 billion to $50 billion annually in farm products for the next two years. That compares with $24 billion in agricultural and […]
Last week, the Federal Reserve Board released its January 2020 Beige Book update, a summary of commentary on current economic conditions by Federal Reserve District. The report included several observations pertaining to the U.S. agricultural economy. * Fifth District- Richmond– “Agriculture contacts were mostly positive because of good crop yields and solid demand; however, farmers faced tighter profit margins due […]
Just one day after the U.S. and China signed a Phase One trade deal, the Senate passed the U.S.-Mexico-Canada Trade Agreement (USMCA). Donald J. Trump ✔@realDonaldTrump One of the greatest trade deals ever made! Also good for China and our long term relationship. 250 Billion Dollars will be coming back to our Country, and we are […]
Financial Times writer James Politi reported on Wednesday that, “The US and China have signed an agreement to pause the trade war that has weighed on the global economy for nearly two years, while leaving in place tariffs on hundreds of billions of dollars of Chinese imports. “The so-called phase one deal signed at the White House on Wednesday offers […]
Last week, Financial Times writers Emiko Terazono, Andres Schipani and Jamie Smyth reported that, “China’s African swine fever epidemic has dramatically reshaped the global meat market and its trade patterns in the 18 months since the outbreak was first officially acknowledged. “The viral disease, which is deadly for pigs but does not affect humans, has reduced China’s pig herd by more […]
The highly anticipated release of USDA’s crop production and ending stocks reports last Friday created a somewhat negative tone in corn and soybean markets. Despite the slightly bearish tilt, prices for both commodities closed higher on Friday. The pending phase one trade agreement and South American production prospects look to set the tone for prices […]
Fed cattle prices have increased dramatically in the last several weeks. In September, fed cattle prices for steers in Kansas averaged $101.23 per cwt. At the end of 2019, fed cattle prices were $122.00. This increase in fed cattle prices had a large impact on cattle finishing profitability in the fourth quarter of 2019. Moreover, […]
Lingling Wei reported in Friday’s Wall Street Journal that, “Chinese President Xi Jinping’s chief trade negotiator will travel to Washington early next week to sign a phase-one trade deal with the U.S., China’s Commerce Ministry said Thursday, the first official confirmation by Beijing on the signing of an agreement that could help ease bilateral tensions. “The Chinese delegation, to be led […]
This is a presentation summary from the 2019 Illinois Farm Economics Summit (IFES) which occurred December 16-20, 2019. A complete collection of presentations including PowerPoint Slides (PPT) and printable summaries (PDF) are available here. Crops Crop prices continue adjusting to the uncertainty around 2019 production prospects and the current trade environment. Barring a resolution to the […]