The Associated Press is reporting that U.S. President Donald Trump and Chinese President Xi Jinping may meet during the G-20 summit in Argentina scheduled for late November. China says it is in contact with the U.S. amid reports of the upcoming meeting. A Chinese Foreign Ministry spokesman offered no specifics but did say he’d seen the relevant reports. Trump’s top economic adviser Larry Kudlow tells CNBC that there is “some movement” toward a meeting at the G-20.
Kudlow says, “They have lots to talk about, so we’ll see.” On the word of the potential meeting, global indexes had gained after a couple days of sharp drops. Treasury Secretary Steven Mnuchin has advised against naming China a currency manipulator, which is something that would trigger penalties, and reports say that move has eased some tensions between the U.S. and China. It’s not currently known if the U.S. will even consider lifting $250 billion in tariffs on Chinese imports, which triggered retaliatory tariffs on American imported goods. Despite the U.S. tariffs on Chinese goods, the trade deficit between the two countries defied expectations and widened in both August and September of this year.
Soybean crushers in Brazil are running low on soybeans as they face tougher competition from Chinese buyers over the remaining 2017-2018 season supplies. A Bloomberg report says crushers in Brazil worked with negative margins since the second half of September. The pace of processing has slowed since the soy rally has doubled premiums this year, putting a squeeze on domestic producers. Other plants have halted all activities and say they won’t start up again until the upcoming harvest starts in the first quarter of 2019.
One industry analyst says soybean product inventories are running low, with some plants announcing they no longer have soy oil to sell. The industry group representing soybean processors says crushing margins are getting pressure from higher soybean prices. However, it didn’t really slow the pace of processing until August of this year. Brazil soybean stocks are expected to fall by 1.5 million tons to their lowest-level since 1999. September exports totaled 4.6 million tons, with 91 percent heading to China.
Source: NAFB News Service