The U.S. Census Bureau says China purchased a record $4.8 billion in U.S. agricultural goods in October. NDSU Extension Crops Economist Frayne Olson isn’t surprised with the purchases. “They’ve bought a lot of soybeans, corn, pork and cotton.” Bigger picture, the effort may not be enough for China to meet their phase one commitments, but Olson thinks it will be close. In the first calendar year of the deal, China agreed to purchase an additional $12.5 billion of U.S. ag products above the 2017-dollar value. Olson estimates the 2017 number around $20.8 billion. Combined with additional funds, that’s a $33.3 billion commitment. “I think they’ll fall short of the increased $12.5 billion, but it will be above the 2017 number. Many things impacted purchases this year.” The deal states if something unanticipated happens, the two parties will get together and work out differences, but “there’s nothing in the agreement that says if you don’t make it, here’s what happens.”
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