LEADER PAGE - 08/06/2019
MOUNTING U.S.-CHINA TRADE TENSIONS WHIPSAW HOG PRICES – Global trade tensions weighed on expectations that China will continue to rely on U.S. pork exports, leading to a volatile session in hog futures Monday. U.S. hog prices on the Chicago Mercantile Exchange took a steep tumble last week, losing 16 percent. On Monday, most-active October futures shed as much as 5 percent, trading near 62 cents a pound earlier in the day before rebounding as buyers swooped in. By the end of the trading session, the contract settled 2.6 percent higher at about 67 cents, after getting to as high as about 70 cents. (Wall Street Journal)
CHINA HALTS U.S. AGRICULTURE PURCHASES AS TRADE WAR HEATS UP, ‘BODY BLOW’ TO FARMERS – The Chinese government has confirmed it will suspend purchases of U.S. agricultural products in response to President Trump’s new 10 percent tariffs on $300 billion of Chinese goods. Privately-run Chinese crushers that had received retaliatory-tariff waivers on American soybeans from Beijing have stopped buying the commodity due to uncertainty over trade relations. Chinese buyers have turned to South American soybeans and the Asian nation said it doesn’t rule out for now taxing American agricultural goods that were traded after Aug. 3, the Chinese Commerce Ministry said Monday. (Bloomberg)
‘THE FED CANNOT STOP THE BLEEDING’ – Banks are increasingly using the "recession" word following President Trump's tweet last week announcing additional Chinese tariffs. Morgan Stanley chief economist Chetan Ahya said Monday that, "as we view the risk of further escalation as high, the risks to the global outlook are decidedly skewed to the downside.” If the U.S. continues to turn up the heat on China with up to 25 percent tariffs “on all imports from China for 4-6 months, [Morgan Stanley] would see the global economy entering recession in three quarters,” Ahya wrote. The Fed's latest rate-cut may not be enough to stave off recession in the U.S. (Fortune)
ILLINOIS CROPS MAKING SLOW PROGRESS DESPITE WEATHER – Despite a late start for most farmers and ongoing hot and dry conditions, crops are progressing as well as can be expected in parts of Illinois. Considering the worsening soil-moisture status of many fields around the state, crop reports could probably be worse than USDA reported in its weekly status update Monday. The portion of the Illinois soybean crop considered poor or worse increased this week, from 20 percent to 24 percent. For corn, 22 percent of the crop is rated poor or very poor this week, up from 18 percent last week. Meanwhile, 81 percent of corn is silking, a 22 percent improvement over last week. And 72 percent of soybeans are blooming, a jump from 52 percent. (FarmWeekNow)
About Leader Page: This collection of articles from mainstream and agriculture media is designed to keep you informed as a member and leader in our organization. The articles here are not intended to represent Illinois Farm Bureau policy or positions, but rather to give you an idea of what is being reported regionally, nationally and globally.
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