The Phase One Trade Deal: Projections and Implications

Date
2020-01-01
Authors
Hart, Chad
Hart, Chad
Schulz, Lee
Schulz, Lee
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Altmetrics
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Center for Agricultural and Rural Development
Abstract

There have been a number of agricultural market movers (issues that change the direction and intensity of price moves) over the past year; however, most of these movers cancel each other out. Weather problems limited supplies and pushed prices higher, but the trade disputes and tariffs limited usage and offset the price impacts. With the passage of the USMCA and the signing of trade deals with China and Japan over the past few months, there is some positive news on the trade front. However, as the market reaction to the US-China trade deal signing indicates, agricultural markets are not interested in the political deals, but in actually seeing trade flows change due to these deals.

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