China will conduct goodwill buying of soybeans, corn and pork as trade talks between Beijing and Washington resume, according to Bloomberg, citing unnamed sources.
While total volume of farm product purchases will depend on how talks will go, amounts reportedly will probably be smaller than the 20 million metric tons China committed to during the last trade war truce. Those sources say the plan has not been discussed with their American counterparts and are not part of the current truce agreement.
Recall that several past reports of “major Chinese purchases” have not been realized, and so traders will likely be cautious about the most recent reporting/conjecture on this topic.
Meanwhile, some sources signal a list that Trump's team will provide China will include commodities besides the obvious (soybeans, corn and pork) such as wine, nuts (walnuts, pistachios and almonds), dairy, poultry, ethanol, cotton, wheat, rice, sorghum and other commodities.
Besides which commodities will be on the list, other unknowns include the quantities and timeframe for such purchases, and whether or not China has flexibility regarding any purchase commitments.
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