China continues buying U.S. ag goods despite Taiwan visit
An ag economist says the recent strain on U.S. – Chinese relations, because of House Speaker Nancy Pelosi’s visit to Taiwan, hasn’t stopped the trading partner from buying U.S. ag products.
But the University of Missouri’s Ben Brown is urging caution…
“We’re encouraging China to diversify and build up their own [grain] production,” he said. “Right now, we’re playing this card of ‘you need us’; it might not be that far down the road that they don’t need us, at least not to the degree they do now.”
Brown says the relationship has been waning for several years. He tells Brownfield China has cut certain climate change and military communications, but that hasn’t impacted export logistics.
“That’s maybe why the markets have rebounded a little bit after that selloff,” Brown said.
November soybeans were up 28 and three-quarter cents after Tuesday’s close following steep losses last week over Chinese demand concerns.
China has purchased at least 262,000 tons of U.S. soybeans and 133,000 tons of U.S. corn since Pelosi’s Taiwan trip – with more purchases from unknown destinations likely to be China.
Brown made his comments during Brownfield’s recent Weekly Commodity Market Update.