Trump says China is ‘letting us down’ by not buying US farm products during trade talks

[Zippyjuan]

https://www.cnbc.com/2019/07/11/trum...-products.html

Not that long ago he claimed they had agreed to buy more agriculture products.

China is not purchasing U.S. crops as the world’s two largest economies scramble to end their trade war, President Donald Trump said Thursday.

The president tweeted that Beijing “is letting us down” by not buying American agricultural products “that they said they would.” The development could bode poorly for efforts to reach a trade agreement, as U.S. officials have said they expect China to purchase crops as part of ongoing talks.

“Hopefully they will start soon!” Trump said.

Washington and Beijing have reengaged in trade talks in recent weeks after discussions collapsed in May. At the time a developing deal fell apart, Trump accused China of backing out of major commitments.

Stock market watchers have followed the conflict between the U.S. and China closely. A sustained trade war could damage not only American businesses but also the global economy.

After Trump and Chinese President Xi Jinping met at the G-20 summit in Japan last month, the sides agreed to move forward with talks and hold off on imposing new tariffs. But the U.S. president left the meeting with the expectation that China would buy American crops.

“We’re holding on tariffs, and they’re going to buy farm product,” he said at the time.

Increased agricultural purchases serve more than one purpose for Trump. He has long pushed for the U.S. to cut its trade deficit with China. Trump also seeks to help farmers in key electoral states recently punished by flooding, low crop prices and the U.S. trade conflict with Beijing.

More at link.

[PierzStyx]

The reality is that Trump has no clue about any form of economics.

[dannno]

The reality is that Trump has no clue about any form of economics.

You have no clue about any form of negotiations.

[Swordsmyth]

More tariffs are in order.

[Zippyjuan]

The reality is that Trump has no clue about any form of economics.

He does understand to try to not use your own money- use somebody else's whenever possible. You take the profits and avoid the losses while they take all of the risk.

[Zippyjuan]

You have no clue about any form of negotiations.

So far, the Great Negotiator has been much better at quitting agreements than getting them signed. (another reason people are not willing to enter any deals with him- he can't be trusted to abide by any agreements).

[dannno]

So far, the Great Negotiator has been much better at quitting agreements than getting them signed.

Ok, that's still a good start.

[devil21]

You mean Trump said something that hasn't turned out to be true? The hell you say!

This is becoming almost hilarious...if it weren't so sad at the same time. Why does anyone believe anything attributed to him?

[Zippyjuan]

Very recently- July 1st:

https://www.politico.com/newsletters...w-truce-668995

Trump promises more ag purchases by China under new truce


TRUMP, XI REACH ANOTHER TRADE TRUCE: During an 80-minute meeting this weekend on the sidelines of the G-20 gathering in Osaka, Japan, Trump agreed to postpone his plans to slap tariffs on another $300 billion in Chinese goods, allowing Washington and Beijing to reboot negotiations after they fell apart in May, write POLITICO’s Doug Palmer and Anita Kumar.

“We’re holding on tariffs, and they’re going to buy farm product,” Trump said after his sit-down with Xi. China last week bought about 544,000 metric tons of U.S. soybeans, the largest purchase since March, according to USDA data.

More farm goods flowing to China would be welcome news for U.S. ag producers, who have seen exports plummet amid the trade war. Trump’s decision to postpone tariffs is also a relief for U.S. businesses and consumers.

But China hasn’t fulfilled its previous promises to buy about 14 million tons of soybeans as part of prior short-term trade deals with Trump, as Perdue has pointed out. And, as Bloomberg notes, a Chinese government summary of the truce makes no mention of renewed food and farm purchases.

What else is in the truce? Trump will ease his trade ban on Chinese telecom giant Huawei, which is a major customer for many U.S. tech companies.

What’s not in the truce? There’s still no timeline for concluding the trade talks — and, of course, no guarantee that negotiators will be able to resolve their differences on major issues like structural changes to the Chinese economy.

More at link.

[Zippyjuan]

https://www.agriculture.com/news/bus...in-of-soybeans

NEW BUYERS ELUSIVE, U.S. BUILDS A MOUNTAIN OF SOYBEANS

8/13/2018

U.S. farmers will reap a record-large soybean crop in the middle of a trade war with China, ordinarily the No. 1 export customer for the most widely grown U.S. crop, with no replacement buyer on the horizon. As a result, said the USDA, farmers can expect the lowest season-average price for soybeans in 12 years and the largest soybean stockpile ever, which likely will hold down prices in the future.

China will import fewer soybeans during the tit-for-tat tariff war, and U.S. exports will stagnate, rather than accelerate 11% as earlier forecast, during the trade year that opens September 1, said USDA in its monthly WASDE Report. There were hopes that buyers — the European Union was mentioned prominently in late July — would tap the U.S. as a back-up supplier because Brazilian soybeans are in demand in China, but it has not been enough to expand the U.S. export flow.

“Lower U.S. soybean prices vis a vis Brazil, a result of China’s duties imposed on U.S.-origin soybeans, have contributed to a surge in EU imports from the U.S.,” said USDA analysts. “The recent shift to U.S. origin is likely to continue as long as crush margins remain attractive. However, it is important to note that the EU is a mature market with limited capacity to expand,” they said in the Oilseeds: World Markets and Trade Report. The EU buys one sixth as many soybeans as China, 15 million tonnes vs. 95 million tonnes.

In its first forecast of the fall harvest, the USDA pegged the soybean crop at 4.586 billion bushels, 4% larger than the record set last year. The crop would be worth $40.8 billion at USDA’s estimated average price of $8.90 a bushel. By comparison, the smaller 2017 crop was worth $41.1 billion because it sold for 45¢ a bushel more.

The soybean stockpile has multiplied from a modern-day low of 92 million bushels in fall 2014. Some 430 million bushels, a five-week supply, are expected to be in U.S. warehouses at the end of this month. The so-called carryover would stand at 785 million bushels, a nearly 10-week supply, when the 2019 crop is ready for harvest, the result of this year’s mammoth crop and stand-still consumption.

China’s vice minister of agriculture told the Xinhua news agency that Beijing could replace the U.S. with other suppliers, reported The Australian newspaper. “Many countries have the willingness, and they totally have the capacity to take over the market share the U.S. is enjoying in China,” said Vice Minister Han Jun. “If other countries become reliable supporters for China, it will be very difficult for the U.S. to regain the market.” Han said negotiation was the only way to resolve Sino-U.S. trade dispute.

[Swordsmyth]

You mean Trump said something that hasn't turned out to be true? The hell you say!

This is becoming almost hilarious...if it weren't so sad at the same time. Why does anyone believe anything attributed to him?

I am shocked to find out that the ChiComs lied and broke their word.

SHOCKED!

[Swordsmyth]

https://www.agriculture.com/news/bus...in-of-soybeans

With all the dead pigs this would have happened anyway.