Cargill is worried about the White House's trade policy. This is expressed in a letter from the Global Trader designed to provide United States Trade Representative Robert Lighthizer with arguments for negotiating with a Chinese trade delegation.
The five-letter letter, released last Friday, is the response to a request from Lighthizer's office to decide to impose US punitive tariffs on Chinese products worth $ 50 billion. US President Donald Trump wants to protest against the robbery of US intellectual property.
The Chinese have threatened in response punitive tariffs on US products, including on soybeans.
Cargill is concerned about the potential impact of the measures on US agriculture.
While understanding the intention of the US administration to force the dialogue on the aberrations of recent years, the measures destroy and jeopardize sensitive trading practices.
Traders in the international grain market such as Cargill, ADM or Bunge are now suffering from the effects of a possible trade war between the US and many other foreign customers.Already in recent years, the big ones in the agricultural market have not had an easy time making money, because the prices of agricultural products have been down and trade in cereals and oilseeds has faltered.
The trade dispute has already disrupted retail chains, as shown by the example of US sorghum deliveries. China has imposed a punitive tariff of 25% and many shiploads had to be redirected with price concessions to other countries.
Cargill expects US farmers in particular to suffer as China turns to other soybean or oilseed suppliers. After all, China has imported $ 12 billion of US soybeans.
Cargill points out that punitive tariffs do not help resolve trade issues - quite the contrary.
Text: HANSA Derivatives Trading GmbH /
