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Trade Issues with China Dominates Headlines In 2019

Trade issues with China dominated the canola sector this year.
 
In March, China banned canola seed shipments from two of Canada’s biggest exporters, Richardson International and Viterra, over what it said was pests of concern found in their shipments.
 
Jim Everson, president of the Canola Council of Canada says earlier this month Canadian officials were on the ground in China to discuss technical issues in face-to-face meetings.
 
"We are working very closely with the Government of Canada. We have some excellent people in terms of our diplomatic core. We have a new ambassador in China who is very much aware of our issues from a canola perspective and its something that's top priority for our industry and for the Canola Council to reinstate our exporters in the Chinese market and return that market to a predictable one."
 
At this point China is only taking about a quarter of what they would normally take from us each month in canola seed exports.
 
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U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again

Video: U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again


The market was hoping for a US-China trade deal, but we got a trade “truce” for now from the keenly awaited Trump-Xi meeting at the APEC Summit.
China commits to minimum purchase commitments of 12 MMT of U.S. soybeans during the “current season” and a minimum of 25 MMT annually through 2028.
U.S. Treasury Sec Bessent said other Asian countries have agreed to buy additional 19 MMT of US soybean.
Soybean futures trading above $11 now- they normally tend to rally to $12.
As expected, US Fed cuts interest rates by -0.25% again in October to 3.75%–4.00%. No further cuts promised for this year but trade looking out to the Dec FOMC.
The Bank of Canada cut interest rates to 2.25% but raised concern over trade war damage.
Soy meal futures, remarkably, have had 14 consecutive higher close sessions. A bull market in soybeans is a bull market in soy meal!
Cattle futures lower as funds unwind out of cattle for now due to Trump headlines and objective to lower beef prices.
All major stock indices climb to new record highs. It was Mag 7 reporting week, which had mixed results. But we now have the first $5 trillion company in Nvidia!