Trade Talks or Political Ploy

AgriBusiness 110518
President plans meeting with Chinese leader Xi Jinping ( FJM )

Commodity markets begin Monday muted following last week's surge on news President Trump is preparing to meet with Chinese leader Xi Jinping during the G20 meeting in Buenos Aires this month.

During an interview with AgDay-TV host, Clinton Griffiths, analysts Matt Bennett of Bennett Consulting and Bill Biederman of Allendale say the planned face-to-face is still just that; planned.

"Is it on solid ground or was it more of a political statement ahead of an election," asks Bennett. "I don't know and we won't know that until the 29th of November." 

Bill Biedermann says the conversation around a meeting between president's Trump and Jinping changed the mood of the markets. 

"We came into the week with extremely negative [and] fearful statements being made in the news media about carry-over being over a billion bushels and we were going to lose China forever," says Biedermann. "Then on Thursday the whole attitude just changed in minutes." 

Bennett agrees that movement on trade talks with China has and will change commodity markets.

"There's no denying it will change the fundamentals and the dynamics of the market overnight," says Bennett. 

Watch the full clip for what they think about markets and prices in the days ahead. 
 

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