China has recently purchased US feed grains from the US. These sales provide reinforcement for Chinese buyers’ willingness to purchase US raw materials in a time where the 2 countries are still in a political war.
The US Grains Council reports that private exporters have registered a total of 458,300 metric tons (18 million bushels) of US corn sold to China as of March 22. Combined with 130,000 tons (5.12 million bushels) of US sorghum sold as of March 14, these sales provide reinforcement for Chinese buyers’ willingness to purchase US feed grains when political conditions permit.
“The corn purchase by China announced in USDA’s export sales report is very welcome news for US agriculture, and we see it as a positive sign for the US-China relationship as intense negotiations continue,” according to the US Grains Council. “The outcome of these talks is crucial to US grains and ethanol, and we appreciate continued engagement by our negotiators and their counterparts in China.”
The trade war began in early July of last year when US President Donald Trump introduced tariffs on China for its alleged unfair trade practices. So far, the US has already slapped tariffs on US$ 250 billion worth of Chinese products, and has threatened tariffs on US$ 267 billion more. China, for its part, has set tariffs on US$ 110 billion worth of US goods, and is threatening qualitative measures that would affect US businesses operating in China. The US-Chinese trade negotiations remain a topic of conversation. The US is planning to host a Chinese delegation in early April. The US Grains Council will continue conversations with key players to keep members and customers informed.