Today, the U.S-Mexico-Canada Agreement (USMCA) officially enters into force, a culmination of years of work to update and improve the North American Free Trade Agreement (NAFTA), offering partners improved agricultural market access and freer, fairer trade between the countries.
“This agreement solidifies our country’s most important and strategic trade relationships with our best customers and promises further economic growth in tandem with our most-valued partners – Mexico and Canada,” said Darren Armstrong, U.S. Grains Council (USGC) chairman. “We appreciate the administration’s hard-won efforts to deliver and implement an agreement that includes significant improvements and offers more modern approaches to trade and we thank our partners in both Canada and Mexico whose efforts have been equally appreciated and fruitful.”
From negotiations to ratification, the Council worked and continues to work within the industry and with Canadian and Mexican corn, sorghum, barley, co-products and ethanol customers to ensure the needs of the U.S. grains sector are met and USMCA will build on the success the U.S. experienced under NAFTA.
“We often hosted Mexican buyers to the United States, sent U.S. farmers on missions to Mexico and have continued to market the importance of our trade relationships with our stakeholders in both countries,” said Armstrong. “Both the Council’s leaders and members are very pleased to see USMCA enter into force today and look forward to many prosperous years for our country’s farmers and those in Mexico and Canada.”
Name change for INTL FC Stone. China & the growing corn deficit, Army worms-is that a concern for China. Where are we at for Phase One with China…a lot of opposite information. Progression of the winter wheat harvest. How are drought areas dealing with harvest? Early Russian harvest is better then expected. Bayer has a deal with Round-Up & dicamba. Hogs & Pigs report out on Thursday. Update on African Swine Fever
Non threatening weather, crop progress report-has some questioning percentage.
Is the issue with China a trade barrier or more of a COVID issue
Livestock…China & Tyson Foods will set a stage for other proteins.
Cold Storage Report. Hogs & Pigs report out on Thursday.
China Sunday suspended poultry exports from an Arkansas Tyson Food’s processing plant where workers tested positive for COVID-19.
China’s General Administration of Customs announced the suspension after Tyson Foods confirmed a cluster of COVID-19 cases at its facility in Springdale, Arkansas.
A Tyson spokesperson told Reuters the company is investigating the matter, adding, “It is important to note that the World Health Organization, the Centers for Disease Control and Prevention, USDA and the U.S. Food and Drug Administration agree that there is no evidence to support transmission of COVID-19 associated with food.”
China also halted exports from a pork processing facility in Germany following an outbreak of COVID-19 at the plant. China has stepped up food inspections for the novel coronavirus in recent weeks. Reuters says Beijing began testing meat, seafood and fresh produce for the coronavirus last week, and some ports were opening all containers of meat to carry out coronavirus tests.
Farm Partners Topics Discussed: – The current state of the corn/soybean market – Pressure from South America for the soybean crop – Safrinha corn crop condition – Spring bounce for row crops – corn/soybean export pace – Ethanol demand – Bottom Line: What will it take for the markets to move higher from here?
The Friday conversation with Jeff Peterson of Heartland Farm Partners. This weeks WASDE report, export demand, weather market & what will it take to move markets.
Cattle market has some bearish feel to the trade. Nothing exciting in the cash cattle market. Will we see boxed beef continue to drop? What about all the meat that is “sitting around”? Beef lower, cash lower, Latest inquiry from the Justice Department. 60 days yet of muddy waters to get through. Pork exports ALL TIME high. Are we building premium into the back months? Friendly to the grains.
Highlight of the day was the wheat market…crop doesn’t look good & the market is finally responded to it. EU wheat isn’t good, U.S. wheat has some struggles. Tension once again with China. Shifting away from planting & focus goes to weather & plant growth. Rains of the past few days will help out the crops with upcoming heat. Bean exports were small, but to China.
The Trump Administration sent a formal notice to Congress that it doesn’t see Hong Kong as an autonomous region from China. Politico says that puts Hong Kong’s status as a separate customs territory at risk and opens up Beijing to sanctions.
The move would hurt Beijing but also lessen Hong Kong as an Asian center for business and finance. “I fully expect the U.S. to proceed with sanctions on individuals and entities deemed to be undermining Hong Kong’s autonomy,” says Bonnie Glaser, director of the China Power Project at the Center for Strategic and International Studies. Politico says Beijing recently proposed a “national security law” that would bypass Hong Kong’s legislature and give China more authority to crack down on protests.
What’s next for the U.S. is currently up to President Trump, who hinted at the possibility of sanctions on the Asian nation. China has already vowed to retaliate if the U.S. takes strong actions because of its moves against Hong Kong. Assistant Secretary of State for East Asian and Pacific Affairs David Stilwell says the possibilities include personnel sanctions, visa sanctions, economic sanctions, as well as numerous other options.
The U.S. Chamber of Commerce says any changes to Hong Kong’s status could have serious impacts on the more than 1,300 U.S. companies that operate in the island nation.
Getting a lot of questions about Hong Kong and the assessment & what will happen from that assessment. Will it affect Phase One? Brazil corn on what is being heard. Acre numbers & prevent plant…recent crop progress numbers, no big surprise. Are there some weather worries? Black Sea update with rains & damage. Livestock-where are we at on processing capacity? June cattle moves about the 100-day moving average for the first time in 4 months.