R.J. O’Brien Head of Market Insights Rich Feltes says news the U.S. and China are pulling trade tariffs off the table is encouraging, which should indicate China will not cancel anymore old crop soybean shipments. “China still has 3.2 million tons of old crop beans on the books with the U.S. of sold, not shipped. That’s a lot of bushels,” he says. “There’s a comfort level now that won’t be canceled. Secondly, Chinese crushers, as these negotiations continue, will be more likely to book more September, October and November U.S. cargoes.” However, Feltes says the trade imbalance cannot be all made up entirely from agriculture. “Even the bean thing has its limits.”
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