In this file:

 

·         China’s Trade Damage to Ag Is Done, It’s Time to Force a Deal, Analyst Says

Heavy stock losses in the U.S. and China will bring both to the table, analyst says.

 

·         Nebraska farmers looking at alternatives as the trade war with China intensifies

China says it's halting new purchases of US soybeans and other agriculture products

 

·         As US-China trade war escalates and farmers hurt, White House downplays impact on Americans

"Farmers have been great. They're patriots. They've backed us 100%, God bless 'em," Kudlow said. "We are helping them with assistance as much as we can. A lot of times the farmers, you know, don’t like the assistance, they’re hardy types, they’re old-time free-market work types. Sure we’re helping them as much as we can. We’ll help them more if need be."

 

 

China’s Trade Damage to Ag Is Done, It’s Time to Force a Deal, Analyst Says

Heavy stock losses in the U.S. and China will bring both to the table, analyst says.

 

By Ray Grabanski, Successful Farming

Agriculture.com - 8/6/2019

 

The markets recently have been plagued by two negative factors.

 

First, good weather puts pressure on prices. Secondly, more China trade talk is scaring investors.

 

Good weather has always hampered the market, but recently, whenever China trade negotiations make headlines, ag markets go down.

 

Chinese Ways

 

Sometimes, it can be good news on trade, sometimes bad – but always grain markets go down.  It’s almost like the grain market is reminded that China is a communist country – completely controlled by the government. There is no freedom, so whatever their government leaders decide determines trade. In contrast, in the U.S. law governs trade, and all our government can do is create law. Private individuals are still free to do what they want under the law (free from government intervention). Not true in China! 

 

To start this week, prices for everything (stocks and commodities) were lower to start the day. But many commodities rallied after the initial break, with a number of commodities forming upside daily reversals (feeder cattle, hogs, corn). That occurred while stocks were dropping hard, with the Dow losing over 700 points Monday on China trade concerns.

 

The reality is that the agricultural sector has suffered the past year, as China not only tariffed soybean imports, but essentially banned them. But China only had tariffs put on half its exports to the U.S. – the U.S. didn’t do anything with $300 billion in imports (and still hasn’t).

 

The threat is far more ominous to the stock market than the ag sector (Ag has already suffered the worst fate possible – zero exports). So, more tariffs now on China will only force them to make a deal on trade quicker – and that would benefit ag. So, to tariff the Chinese further now will only help the ag sector’s situation – not hurt it. Extremely heavy and quickly enacted tariffs on China now would be bullish agriculture!

 

Heavy stock losses in the U.S. and China will only bring both leaders to the table quicker.

 

So, agriculture marches on, with China and the U.S. still playing a game of chicken in trade, with U.S. agriculture suffering the most (by design from China, who not only tariffed ag products but also banned purchases from the U.S.). This was a designed plot by China. The sooner the U.S. hits them back – hard – on all other exports to the U.S. (the other $300 billion), the better for the ag sector. I’d like to see a 5% increase, monthly, in tariffs announced on the $300 billion from China, that would continue until they make an agreement (even beyond 25%, even beyond 100%). But after agreement, the tariff level at that time would stay on for a period of one more years once the agreement is reached, and then come off 5% per month until gone. 

 

That would put maximum pressure on China to make a deal quickly, and also on U.S. business to move its supply chain from China to other Asian countries. That would put the maximum hurt on China quickly – and would be the greatest aid to agriculture to force a deal. But oh, how other U.S. business would howl (especially Apple)! At least if announced, we can start making plans to operate properly instead of trying to guess what government will do next.

 

Weather Outlook ...

 

more

https://www.agriculture.com/markets/analysis/chinas-trade-damage-to-ag-is-done-its-time-to-force-a-deal-analyst-says

 

 

Nebraska farmers looking at alternatives as the trade war with China intensifies

China says it's halting new purchases of US soybeans and other agriculture products

 

Michelle Bandur, KETV Omaha (NE)

Aug 6, 2019

 

Neb. — About 100 farmers turned out for a tour of another farm in Saunders County on Tuesday evening.

 

"With trade not happening, local things needs to be happening," Dan Wesely, chairman of the National Corn Growers Association said.

 

Wesely helped organize the tour of chicken barns on a property near Mead, Nebraska. he said farmers are looking at alternatives since China is stopping exports of agricultural products.

 

"We are looking at the chicken barns and looking at how to diversify your farm operations and do something other than raise corn," Wesely said.

 

Some farmers are investigating other investments, with the Costco chicken plant opening in Dodge County, he said.

 

"It's a win-win. They don't have to worry about it going exports and it can be consumed here in Nebraska and feed on Nebraska grain," he said...

 

more, including video report [1:42 min.]

https://www.ketv.com/article/people-flee-as-motorcycle-backfiring-sparks-panic-in-new-york-s-times-square/28632374

 

 

As US-China trade war escalates and farmers hurt, White House downplays impact on Americans

 

By Ben Gittleson, ABC News

Aug 6, 2019

 

WASHINGTON — After steep losses on Monday, world markets wobbled through escalations in the U.S.-China trade war on Tuesday as the White House played down investor reaction to the U.S. labeling China a currency manipulator and pledged to further support hard-hit American farmers.

 

"We've had a fabulous market, fabulous market,” National Economic Council Director Larry Kudlow told reporters at the White House Tuesday. “Agreed it was quite volatile yesterday. These things come and go."

 

The White House has repeatedly claimed Americans would be minimally impacted by tariffs, but economists say U.S. companies and consumers bear most, if not all, of the cost.

 

The trade war has hurt American farmers particularly hard. China said on Monday it would not rule out imposing additional sanctions on agricultural imports from the United States and that Chinese companies have stopped purchasing farm produce, Chinese state news agency Xinhua reported.

 

The Trump administration has previously pledged billions of dollars in financial assistance to those farmers, many of whom say they would prefer to make money through stabilized trade instead of government aid.

 

"In the last 18 months alone, farm and ranch families have dealt with plunging commodity prices, awful weather and tariffs higher than we have seen in decades," Zippy Duvall, the president of the Farm Bureau, a group that represents farmers, said in a statement.

 

He called China halting agricultural purchases a "body blow to thousands of farmers and ranchers who are already struggling to get by."

 

Kudlow said the administration would continue to assist farmers "as much as we can" and would "help them more if need be."

 

"Farmers have been great. They're patriots. They've backed us 100%, God bless 'em," Kudlow said. "We are helping them with assistance as much as we can. A lot of times the farmers, you know, don’t like the assistance, they’re hardy types, they’re old-time free-market work types. Sure we’re helping them as much as we can. We’ll help them more if need be."

 

Roger Johnson, president of the National Farmers Union, told Bloomberg News Trump's strategy of antagonizing China has made things worse and farmers "can't withstand this kind of pressure much longer"...

 

more 

https://abcnews.go.com/Politics/us-china-trade-war-escalates-farmers-hurt-white/story?id=64802100