U.S. China roller-coaster taking commodity groups on wild ride
Rollercoaster trade relations between the U.S. and China are taking commodity groups on a wild ride.
Minnesota Association of Wheat Growers executive director Charlie Vogel says the thought of the phase one deal falling apart is very concerning.
“Phase One for wheat specifically, with the TRQ quotas and all (that), wheat was a big winner.”
But trade tensions threatned the deal in late May as President Trump criticized the Chinese government for its handling of the coronavirus outbreak and for imposing greater restrictions on Hong Kong.
But China has since ramped up purchases of U.S. ag goods despite threats to pause imports of pork and soybeans.
Vogel tells Brownfield market access to China is critical.
“Foreign relations are dicey and complicated, but we need the trade. The world needs to eat.”
He says the U.S. produces the best quality wheat in the world, at a fair price, and producers should be able to export their product.