In this file:


·         U.S. livestock: Hogs limit up again on China tariff exemption

·         U.S. grains: Soybeans extend gains on big Chinese purchase



U.S. livestock: Hogs limit up again on China tariff exemption


By Tom Polansek, Reuters

via Canadian Cattlemen - September 13, 2019


Chicago | Reuters — U.S. lean hog futures climbed by an expanded daily limit on Friday as China said it would exempt U.S. pork from additional tariffs imposed during its trade war with the United States.


The exemptions raised hopes for Chinese buying and were seen as the latest sign of easing Sino-U.S. tensions before a new round of talks aimed at curbing the bruising trade dispute.


China has imposed three rounds of retaliatory tariffs on U.S. pork, including 25 per cent increases in April and July 2018 and a 10 per cent bump this month, raising the total duty to 72 per cent from 12 per cent before the trade war.


It was not immediately clear if Beijing would suspend some or all of the tariffs, which have sliced U.S. export sales to China, the world’s top pork consumer.


China has the potential to further increase imports because an outbreak of deadly African swine fever has cut its pig herd by a third since mid-2018, traders said. The trade war and Beijing’s tariffs have been a hurdle for U.S. suppliers, though.


“The real winner in a trade resolution with China may be the pork industry,” said Karl Setzer, commodity market risk analyst for Agrivisor.


Chicago Mercantile Exchange (CME) October lean hogs jumped 3.3 cents to 66.475 cents/lb. and reached a one-week high. December lean hogs soared the maximum 4.5 cents to a six-week high of 68.7 cents/lb. February hogs also climbed the daily trading limit.


The exchange temporarily increased the limit to 4.5 cents after the market shot up by the standard three-cent limit on Thursday. The expanded limit will remain in place on Monday.


Beijing said on Thursday that Chinese firms had started to inquire about prices for U.S. farm goods and that possible purchases included pork.


“It was the China discussion that really provided the catalyst here,” said Mike Sands, an independent U.S. livestock market analyst...


more, including chart



U.S. grains: Soybeans extend gains on big Chinese purchase


By Karl Plume, Reuters

via Canadian Cattlemen - September 13, 2019


Chicago | Reuters –– U.S. soybean futures hit a six-week high on Friday as China’s first large purchase of U.S. beans in months and easing of some duties on U.S. exports fuelled hopes of a detente in the tariff war between Washington and Beijing.


Corn also firmed as signs of a U.S.-China trade thaw sparked short covering, while wheat futures ended flat.


All three markets posted their strongest weekly gains since mid-summer.


A report on Friday that China will exempt some agricultural products, including soybeans and pork, from additional tariffs added to optimism about easing trade tensions after Thursday’s news that Chinese firms had booked at least 10 vessels of U.S. soybeans ahead of high-level talks next month.


The U.S. Department of Agriculture on Friday confirmed a portion of those sales, reporting that Chinese importers booked 204,000 tonnes for 2019-20 marketing year shipment.


The year-long tariff battle has stalled massive U.S. soybean exports to top importer China, swelling U.S. stocks.


U.S. President Donald Trump said on Thursday he preferred a comprehensive trade deal with China but did not rule out the possibility of an interim pact.


“There seems to be a willingness to ratchet down the rhetoric ahead of these meetings versus ratcheting it up. At this point it’s a positive sign,” said Jerry Gidel, grain strategist with Price Futures Group...