Will U.S.-China Trade Deal Finally Improve Basis in the Midwest?

Markets and Trade Talks
Here is some storage from a farmer. ( Betsy Jibben )

President Donald Trump is vocal trade negotiations with China are moving in the right direction. The president announced scheduled tariff increases on Chinese goods are on hold for now if the U.S. and China can make a deal.

What could a signed and finalized deal mean for agriculture? One Analyst thinks it will improve basis.

“What I think you’ll actually see happen if [a trade deal would be signed and finalized] is you’ll see a dramatic basis improvement,” said Doug Werling of Bower Trading. “Historically, our basis for corn and soybeans are absolutely horrible compared to what we’ve seen the last 15 or 30 year timeframe.”

Tyne Morgan has the story from the AgDay Agri Business desk with Doug Werling of Bower Trading.