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Bloomberg reported that China proposed buying an additional $30 billion a year of U.S. farm products, including soybeans, corn and wheat, above pre-trade-war levels. The offer forms part of memoranda of understanding under discussion in Washington.
Officials are also discussing removing anti-dumping and anti-subsidy duties on distillers dried grains.
A standing annual purchase commitment across several grains would tighten U.S. export balances if it is delivered. Removing duties on DDGS would open a feed-ingredient export channel that could lift U.S. DDGS prices.
farmprogress.comBloombergFeb 21, 2019After 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 431 past bullish trade events, Wheat (SRW) moved a median +0.0% over 5 sessions (50% higher; middle half -1.3% to +2.1%), and +0.5% 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.
