By Amy Sites, Brownfield Ag News
Wheat grower groups say the trade dispute with China came just as the market picture for wheat was about to improve. From March to June over the past three years, China purchased an average of about 20 million bushels of U.S. wheat, but that’s not the case in this year, according to Vince Peterson, president of U.S. Wheat Associates.
“So it’s kind of like the wet blanket being thrown on top of what looked like it was kind of a turn-around in the marketplace,” Peterson told Brownfield Ag News.
The market was just starting to turn for the better when China threatened 25 percent retaliatory tariffs on U.S. wheat, said Peterson. The wheat groups say Chinese customers stopped buying U.S. wheat in March, unwilling to accept the risk of escalating import prices.
“It’s kind of a matter of how much damage we can absorb in the short term before we get these things fixed,” he said.
The groups are pushing for the U.S. and China to stop trading salvos and come to a resolution quickly.
Leave a Reply