Take China’s Grain Buying With a Pinch of Wheat
Promises to purchase U.S. cereal crops might look encouraging. But this is mostly a negotiating tactic with little substance.
Amber waves of grain.
Photographer: Daniel Acker/BloombergIf you’re looking for a glimmer of hope that China’s trade talks with the U.S. are still on track, how about this: The country is considering buying as much as 7 million metric tons of American wheat, people with knowledge of the matter told Bloomberg News. That follows a report in December that it may buy up to 3 million tons of corn from the U.S., too.
But don’t get too carried away. While such an amount would certainly represent an increase from current levels — depending, crucially, on what period it would be bought over — there’s precious little evidence that Beijing is about to open up trade in its two most protected sectors.