Commodity and stock prices rose Monday after an announcement that tariffs between the United States and China will be put on hold.
U.S. Trade Secretary Steven Mnuchin announced Sunday that threatened tariffs between the two countries would be put on hold, following two days of talks between Mnuchin and China’s Vice-Premier Liu He last week in Washington, D.C.
Following threats from the U.S. to place tariffs on Chinese steel and more earlier this year, China threatened tariffs on soybeans, pork, fruit and other agriculture products. For now, those tariffs are on hold.
China also announced Friday that it would end an anti-dumping investigation into U.S. sorghum imports. The announcement came as great news to sorghum producers, as the anti-dumping duties included a nearly 179 percent “deposit” on U.S. sorghum imports.
“This puts us right back in the hunt for being a considered crop,” Kansas Grain Sorghum Executive Director Jess McCurry said. “Drought had put us there somewhat, and I think we would’ve already seen more sorghum being planted, but this could help even more, especially in area’s doing two-crop after wheat.”
When the Chinese Ministry of Commerce announced the duties in April, sorghum prices fell and trade came to a halt.
“Before it was announced, we had Chinese companies coming in and looking at sorghum on farms and trying to buy it,” McCurry said. “When the original announcement was made, that just stopped, so it will be interesting to see how the market responds and if that starts back up.”
McCurry gave credit to the advocacy work done by National Sorghum Producers, as well as the Trump administration.
After Friday’s announcement, producers got more good news when the trade truce was announced, as well as an agreement from China for a “meaningful increase” to farm product imports from the U.S.
President Donald Trump tweeted Monday that under a potential deal with China the country will purchase “practically as much as our Farmers can produce.”