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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, as part of memoranda under discussion. Officials are also planning to discuss removing anti-dumping and anti-subsidy duties on distillers dried grains.
Perdue called the proposal premature to comment on, and analysts said verification would matter more than the headline figure.
A standing annual purchase commitment would support U.S. grain demand if delivered, but analysts doubt the headline will fix the soybean balance sheet without enforceable quotas. Removing DDGS duties would also widen export options for U.S. feed ingredients.
ajot.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.
