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China plans to accelerate purchases of American farm goods, including soybeans, corn and ethanol, to comply with the phase one trade deal after purchases fell behind due to the coronavirus. The plan follows talks in Hawaii, according to two people familiar with the matter.
China's government has reportedly asked state-owned buyers to work toward meeting the pact.
Expected faster Chinese buying of US soybeans and corn would tighten US old-crop and forward export demand and support US futures. The effect depends on whether purchases are actually shipped rather than just booked.
bloomberg.comBloomberg NewsJun 19, 2020After 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.
After 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 224 past neutral trade events, Soybean Meal moved a median -0.2% over 5 sessions (43% higher; middle half -1.7% to +1.2%), and -0.2% 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.
