China cancels visits to US farms

(Sept. 22)In an unexpected move, China canceled planned visits to US farms. The trips had been touted by the Trump administration as building goodwill between the two countries who have been involved in a trade war.

Visits in both Montana and Nebraska called off

A recent article reports: "The Montana Farm Bureau Federation was told by the Chinese embassy that the delegation “had an adjustment of their agenda” and they’re headed back to China earlier than planned, Rebecca Colnar, a spokeswoman for the Montana bureau, said Friday. The Nebraska Department of Agriculture also said Friday that planned visits were canceled."

The trip cancellation is just the most recent manifestation of the unraveling of the Chinese visit. US Agriculture Department Secretary Sonny Perdue said Thursday that China was planning to visit US farms next week as a gesture of goodwill. The Montana Farm Bureau confirmed the plans but said later in the day that the visits were tentative.

Willie Delwiche a market strategist at Bair based in Milwaukee said: “In this case, it’s a bit more concerning because it’s China making the decision, rather than Trump."

US and global stocks decline on the news

A recent Reuters article reports: "An index of global stock markets surrendered early gains on Friday after Chinese agriculture officials who were to visit U.S. farm states next week canceled their trip, dampening optimism on U.S.-China trade talks.....The MSCI world equity index .MIWD00000PUS, which tracks shares in 47 countries, was 0.23% lower."

US equities also declined on the news as did trade-sensitive commodities such as soybeans and holds. On the other hand gold prices jumped as investors sought a safe haven.

Trump demands a total trade deal with China

Tump says he does not want just a partial trade deal with China and claimed that voters would not punish him for his trade war in the 2020 elections. China had been making conciliatory moves on US agriculture recently as it had encouraged purchases of some US agriculture products that were before subject to tariffs. Soybeans and hogs had been excluded from extra tariffs. Soybean export sales jumped to a six-month high helped by the increased Chinese purchases. Given that the moves do not seem to have brought the Chinese closer to a deal it is not clear whether this policy will continue.

Right now there is no trade deal between the US and China on the horizon and not even any new talks taking place.

Previously published in the Digital Journal