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U.S., China breakthrough sparks hope and skepticism

Skepticism abounds despite U.S. and Chinese officials touting major progress in trade negotiations.

CHS Hedging brokerage director Kent Beadle says the market seems to be discounting the impact of last week’s so-called “first-phase” agreement.

“I think the Administration was fairly clear that it was going to be three to five weeks before what they had agreed upon in principle was going to be signed. And I think that had a lot of folks in the trade wondering if there wasn’t going to be more backpedaling.”

China’s Ministry of Commerce spokesperson says the two sides are having specific discussions about the parameters of a deal that reportedly could result in China purchasing up to $50 billion in U.S. agricultural goods.

Minnesota farmer Noah Hultgren tells Brownfield he hopes the Chinese follow through.

“If that’s the number, that’s fantastic. Hearing from the President, maybe he sounds a little more optimistic than what probably most farmers are thinking. But either way, it’s definitely a positive.”

The Chinese Commerce Ministry spokesperson declined to comment Thursday when asked about the $40 to $50 billion commitment.  He did say Chinese companies are still increasing their purchases of American ag products according to the needs of the domestic market.

Kent Beadle interview:

Noah Hultgren interview:

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