Analysts Waiting For China To Act On Phase One Trade Deal

Analysts in the U.S. are waiting on the Chinese to make their move.

 

Dan Basse is president of AgResource Company in Chicago.

 

"We have this phase one agreement, the agreement was signed on the 15th of January. There's a 30-day period to implement that agreement. That means February 15th, which is this weekend. So next week we'll really start to see if the Chinese have any intentions of buying U.S. grains or ag products. It will be very important to the markets. There may be a little bit of flexibility to coronavirus, but overall the traders here want to see, taste and feel the Chinese demand before they get too rambunctious on the long side of the market."

 

The USDA released its February WASDE report Tuesday morning, which Basse says was very conservative with estimates about the Chinese phase one agreement.

Video: Spring Planting Prep Just Got Serious… We NEED This!

Getting closer to planting season means one thing… it’s time to get EVERYTHING ready.

Today didn’t go exactly as planned—we thought we’d be hauling potatoes again, but instead we spent the day digging equipment out of the cellar, hooking up the grain drill, and getting tractors ready to roll. With wheat planting just around the corner, every piece of equipment matters.

Of course, it wouldn’t be a normal day without a few problems… dead batteries, hydraulic issues, and a truck tire that absolutely refused to cooperate. We tried everything—jump packs, bead bazooka, ratchet straps… and eventually had to bring out the “big guns” just to get things moving again.

But that’s farm life—adapt, fix, and keep moving forward.

We’re getting close to go-time. Wheat seed is coming soon, and planting season is right around the corner