China easing up on agriculture spending
The US and China are set for trade talks and it looks like China will play tough. They’ve undershot trade targets in this deal, partly owing to the pandemic but now it sounds like they’re going to play hardball.
The cargoes are said to be less than 1 million tons compared to the 20 million tons that have been purchased this season.
This has caused a bit of risk aversion but the report highlights that it’s more of a domestic issue that part of trade talks. Chinese businesses are evidently shipping corn into free trade zones and blending them for animal feed — something that avoids import tariffs.
I don’t think this dip will last.