News
Short U.S.-China trade extension keeps ag markets waiting
Market analyst Randy Martinson says he’s slightly disappointed the U.S. and China have only extended the Busan Agreement (made last October) through January 2027.
“The U.S. was hoping for a longer extension to give us more time and security on where the trade is going to take place,” he says.
However, Martinson tells Brownfield it means trade talks will continue.
“We’ll see how things develop today if we’ll see any tariff changes.”
He says there’s still an interest in learning more about China’s $17 billion purchase commitment for U.S. ag products.
“It’s going to be non-soybeans. Does that mean it’s going to be corn, wheat or sorghum? Or does it mean it’s lumber or other products? I think that’s the market’s focus: what does that entail, what products does it encompass and how it impacts the U.S.”
China has been in the market for U.S. soybeans in recent weeks. Martinson, based in eastern North Dakota, says having another demand source has helped strengthen local soybean basis this fall.
Around 60 percent of the soybeans raised in the Northern Plains are exported, with most going to China, according to Northern Soy Marketing.
The U.S. and China are meeting today in Washington D.C.
