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The U.S. and China issued a joint statement agreeing to meaningful increases in U.S. agriculture and energy exports, easing a heated trade dispute. Morgan Stanley estimated a potential $60-90 billion rise in Chinese purchases of U.S. goods, with beef likely benefiting in the near term.
Higher Chinese purchases of U.S. beef, soybeans and corn would support domestic cattle, soybean and corn prices. The statement lacks specifics, so the price effect depends on the details of the coming negotiations.
cnbc.comEvelyn ChengMay 21, 2018After 78 past bullish trade events, LCATTLE moved a median +0.1% over 5 sessions (51% higher; middle half -1.1% to +1.2%), and +0.5% over 20.
After 696 past bullish trade events, SOY 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.
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.
