White House Economic Adviser Larry Kudlow said China's moves in commodities markets in recent days, namely its purchases of soybeans and pork, helped him believe the country may soon reach a trade deal with the United States.
"I would say that mood music, if you will, is very positive going into the negotiations" with the U.S. and Chinese principles in coming weeks, Kudlow told Fox Business Network.
“China's coming into the commodity markets, I'm told soybean prices have been bid up a bit,” he told Stuart Varney. “This is a very, very good beginning we haven't seen this kind of thing,” he said
China’s soybean imports from the United States in August rose six-fold from a year earlier, customs data showed on Wednesday, as cargoes purchased earlier amid an easing in the trade dispute between the countries cleared customs.
China, the world’s top buyer of soybeans, brought in 1.68 million tonnes of the oilseed from the U.S. in August, up from 265,377 tonnes a year ago. That was up 84% from last month’s 911,888 tonnes, according to data released by the General Administration of Customs.
Soybean imports from the United States dried up in the second half of 2018, after Beijing slapped a 25% tariff on a list of American products including soybeans last July, amid a tit-for-tat trade war.
But Chinese state firms resumed purchases of some 14 million tonnes of the oilseed from U.S. farmers starting in December during a temporary truce in the spat.
Those purchases eased after the trade tensions between Beijing and Washington increased, before Chinese firms made two big purchases of U.S. beans this month ahead of high level talks next month.
China’s August soybean imports from top supplier Brazil were 6.68 million tonnes, down from last year’s 7.95 million tonnes, but up slightly from 6.42 million tonnes in July.
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