China Buying U.S. Beans, Corn, Pork, Beef
We all remember the trade war with China a couple years ago and the impact on bean prices paid to farmers. The Trump administration used funds in the CCC program to make direct payments to farmers caught in the trade war. They were called Market Facilitation Program payments. They sure helped farmers weather the "storm" of being caught in the middle of a trade war with our largest export market for beans, China. Then after about 2 years we had a Phase One Trade Deal with China. There were a lot of doubts about if China would honor their side of the deal.
Late last week the Office of the U.S. Trade Representative and the U.S. Department of Agriculture released a report highlighting what ag products China has bought from the U.S. China has purchased $23 billion in ag products under the Phase One Deal. That is about 71 percent of their target. Looking at specific ag products: Corn exports to China are an all time high of 8.7 million tons, soybeans for this marketing year off to the strongest start in history and double 2017 levels, Pork exports to China are already at an all time record only 5 months into the year and beef are triple the 2017 level!
I was also one of the farmers that were doubtful China would live up to their end of the Phase One Deal. I sure am happy I was wrong because it sure has increased the prices for ag commodities!