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China and the U.S. has agreed to cancel existing trade tariffs in phases

(Nov 07, 2019)

Fresh hopes that a "Phase 1" trade deal will be signed in early December sent stock and commodity markets higher to start the day.

The proportion of tariffs on each side will be cancelled together; it is unclear if soybeans will find relief. There are indications that US poultry may be allowed into China for the first time since 2015.

The Trump administration has been putting increasing pressure on Beijing to curb massive subsidies to state-owned companies and stop the forced transfer of American technology to Chinese firms.

Analysts remain skeptical that a “phase one” trade deal will effectively tackle these issues, suggesting the two economic giants will need a more comprehensive agreement before market sentiment can be boosted sustainably.

Maurizio “Moe” Agostino
Moe is the Chief Commodity Strategist. He is responsible for developing plans and assisting clients in the feed, grain and livestock industry to help them protect themselves from commodity price swings. Moe holds a Derivatives Market Specialist (DMS) designation as well as an Honors Degree in Business Administration. Moe has more than 15 years of financial services industry experience.