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Bloomberg reported that China aims to buy at least $20 billion of U.S. agricultural products within a year if a partial trade deal is signed. Purchases could rise to $40-50 billion in a second year after punitive tariffs are removed.
China had already issued waivers for 10 million tonnes of soybean purchases.
A committed purchase target would sharply boost Chinese demand for U.S. corn, soybeans and sorghum. This is supportive of U.S. feed grain prices if the deal is finalized.
thedailyscoop.comBloombergNov 3, 2021After 729 past bullish trade events, Corn moved a median +0.4% over 5 sessions (56% higher; middle half -1.1% to +1.8%), and +0.5% over 20.
After 696 past bullish trade events, Soybeans moved a median +0.3% over 5 sessions (54% higher; middle half -1.3% to +1.9%), and +0.7% over 20.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
