In the next four to seven years, China will become the leading economy in the world and at some point after that, India will become second largest. “That’s why this trade war, if you will, or trade debate is so centered on China—because they have the money to spend over the next six to eight years,” said AgResource president Dan Basse, in market analysis comments at the 2019 Feeding Quality Forum in Amarillo, Texas.
“China is, of course, stepping up their beef imports. They are so hungry that they’re now turning to Africa to see if they can bring in some beef to fill their needs.” If we had a Chinese free trade agreement today, “We couldn’t keep beef and pork on the shelf,” he said
But still, overall U.S. beef export commitments are good. “There’s a solid demand for our beef, both in terms of the domestic market and the export market,” he said. “We think USDA is understating U.S. beef trade, so there’s a real argument of a demand bull market that’s developing as U.S. cattle prices tighten,” according to the Oklahoma Farm Report.
Click or tap here for Basse’s full analysis.