The markets of soybeans and corn expected reaction of China on the abolition of the trump trade talks

After the refusal of Chinese officials led by Vice-Premier of China Liu he, from participation in a video conference on trade agreement between the US and China, which was to be held on August 15, the predictable reaction of the trump was the abolition of further negotiations in this direction.

trump once again accused China of spreading coronavirus and stated that "canceled the talks because they do not want to talk right now with China after he inflicted a world of such harm".

Such a move will increase tensions between countries and can cause a reverse reaction of China, which has not fully fulfilled its obligations for the purchase of American agricultural products in the first part of the bargain.

the First part of the trade deal, which was signed in January and came into force in February, included a discussion of the obligations every 6 months, but the talks were postponed indefinitely. In may, trump announced its intention to terminate the deal, accusing China of insufficient efforts to stop the pandemic.

the First phase of a commercial transaction involves imports to China of goods from the US $ 200 billion for 2 years or $ 100 billion per year, particularly in the 2020 agricultural products 36.5 billion $ and energy by 25.3 billion $. But, if China were agricultural products, but slowly buying, the imports of oil, coal and liquefied gas at the beginning of June accounted for only 5% of the plan.

growth over the last week, prices for U.S. corn and soybeans reduces the demand from China, which buys grain at market prices and gives preference to the cheapest offers, so in the first half of the soybeans bought in Brazil.

Suspension of purchases by China of U.S. corn and soybeans could lead to a sharp decline in prices on the stock exchanges of the USA and strengthened the dissatisfaction of farmers with the policy of trump, which will reduce the level of support the elections in November. It is beneficial to China, which seeks the change of head of States and the normalization of trade relations between the two countries.