After the Chinese government reported that frozen chicken wings imported from Brazil tested positive for Covid-19 last Thursday, other countries have imposed restrictions on purchases from Brazil.
Trade
As U.S., Chinese Negotiators Plan Phase One Meeting, Trade Remains a Rare Area of Cooperation
Bloomberg News reported on Wednesday that, “U.S. and Chinese negotiators plan to discuss progress of their trade deal in the coming days, with Beijing pushing to widen the agenda to include Washington’s recent crackdown on businesses including TikTok and WeChat.”
China Soybean Imports Robust in July, But Soy a Lower Component of U.S. Farm Exports
Bloomberg News reported on Thursday that, “China’s soybean imports were the second highest on record in July as processors increased purchases of cheaper Brazilian supplies and demand for hog feed recovered.”
U.S., China to Discuss Phase One Trade Deal Later this Month
Lingling Wei and Bob Davis reported in today’s Wall Street Journal that, “The U.S. and China have agreed to high-level talks on Aug. 15 to assess Beijing’s compliance with the bilateral trade agreement signed early this year, according to people briefed on the matter.”
China Makes (Another) Record U.S. Corn Purchase in July, But Achieving Phase One Targets May Still be a Stretch
Bloomberg writers Elizabeth Rembert and Michael Hirtzer reported last week that, “China took another step toward meeting agricultural commitments made in the phase one trade agreement with the U.S. with its biggest-ever purchase of American corn.”
China Requires Covid-19 Tests on Meats and Calls for Mass Testing of Brazilian Meatpackers
Last week, the National Health Commission of China published a series of guidelines for the meat processing industry from several countries, such as Brazil. One includes the requirement for nucleic acid testing to identify the new coronavirus in fresh products.
Perspective on U.S., China Trade, as Phase One Purchases “Strong” this Summer
Last week, the USDA’s Foreign Agricultural Service (FAS) released its “2019 U.S. Agricultural Export Yearbook,” that provided “a statistical summary of U.S. agricultural commodity exports to the world and the United States’ primary trading partners.”
China Makes Record U.S. Corn Purchase
Bloomberg writers Michael Hirtzer and Isis Almeida reported on Tuesday that, “China made its biggest purchase ever of U.S. corn in another boost to meeting agriculture targets set in the countries’ first-phase trade accord.”
Brazilian Agribusiness Exports Set a Record, as Domestic Supply Difficulties Begin
Brazilian agribusiness exports were at record levels in June 2020, with foreign sales of US$ 10.17 billion. There was a growth of 24.5% in relation to exports in June 2019 (US$ 8.17 billion). The result was released last Friday by the Department of Commerce and International Relations of the Ministry of Agriculture of Brazil.
Phase-Two Deal With China Unlikely, As U.S. Corn Exports Continue
Josh Zumbrun and Catherine Lucey reported on the front page of Saturday’s Wall Street Journal that, “President Trump damped expectations for a promised phase-two trade pact with China on Friday, saying the relationship between the countries has been too badly damaged by the coronavirus pandemic.”
U.S. Corn and Cotton to China, But Buying Pace Needs a Big Boost to Meet Phase One Pledges
Bloomberg writers Michael Hirtzer and Dominic Carey reported last week that, “While U.S. shippers sent sizable orders of wheat, corn, cotton, pork and other agriculture goods to China in May, China would need to pick up the buying pace further to meet its trade-deal pledges.”
China Expands Suspension of Meat Imports from Brazil
The suspension of meat imports by China so far affects five large Brazilian plants. On Saturday, the Asian country removed pig companies BRF in Lajeado and JBS in Três Passos, both cities in Rio Grande do Sul state, from the list of plants authorized to export. Less than a week earlier, another three units (two beef and one poultry) had their sales to China halted. China is the largest importer of pork, beef and chicken from Brazil.
China Imports Still Not on Pace to Meet Phase One Targets
On Monday, Bloomberg News reported that, “China’s purchases of U.S. goods increased last month as the economy continued its recovery from the coronavirus shutdowns, but imports are still far behind the pace needed to meet the terms of the ‘phase one’ trade deal.”
China’s Restrictions on Food Imports Meet Resistance from Exporters
Last week, Bloomberg’s Mike Dorning reported that, “U.S. health and agricultural authorities issued thinly veiled criticism of new demands from China for food-exporting companies to sign documents stating that they comply with safety standards to prevent transmission of Covid-19.”
China to Accelerate U.S. Farm Purchases, as Trade Partners Raise Concerns Over U.S. Farm Assistance
Bloomberg News reported on Friday that, “China plans to accelerate purchases of American farm goods to comply with the phase one trade deal with the U.S. following talks in Hawaii this week.”
USTR Lighthizer Defends Phase One Trade Deal, Expects China to Fulfill Its Promise
Ana Swanson reported in today’s New York Times that, “The Trump administration’s top trade negotiator defended the president’s economic agreement with China on Wednesday, saying that Beijing was buying more American products and had reaffirmed its commitment to live up to the deal.”
China Continues to Buy American Soybeans
Bloomberg writer Isis Almeida reported on Wednesday that, “China continues to buy American soybeans despite worsening rhetoric from President Donald Trump over Hong Kong.”
Soybean Exports in Focus
Reuters columnist Karen Braun indicated on Friday that, “U.S. soybean exports had a dismal April performance and possibly an even worse showing in May as shipments to China remain historically low, but corn exports hit a one-year high in April and improved on those volumes last month.”
Phase One Trade Deal Progress: USTR Feels “Very Good”
Earlier this week, Bloomberg News reported that, “American soybean exporters sold several cargoes to Chinese state-run buyers, according to people familiar with the matter, showing that some transactions are still going through even after officials in Beijing ordered a pause in some purchases.”
FY 2020 U.S. Agricultural Exports Forecast Lowered
Last week, USDA’s Economic Research Service (ERS) and Foreign Agricultural Service (FAS) released the Outlook for U.S. Agricultural Trade, a quarterly report examining U.S. agricultural trade.