US Agriculture Sec. Perdue: No need for more farm aid after China trade deal

The US Department of Agriculture Secretary Sonny Perdue said, as per Reuters, that China will soon begin buying U.S. farm goods to meet the $40 billion in agricultural purchase agreements it made, alleviating growers’ need for more aid.

Key quotes

If China is going to achieve that, and we believe they are, we think they have to buy earlier than the traditional export season from the United States.

His remarks came one day after U.S. President Donald Trump addressed the convention, promising farmers that the deal will be good for them.

Perdue said the third tranche of a $16 billion aid package announced in May will be paid to farmers ‘imminently,’ but that they should not expect a 2020 aid package.

Chinese Vice Premier Liu He said Chinese firms will buy American products, ‘based on market conditions,’ raising doubts that the country will meet its commitments under the pact.

FX implications

News like this generally helps improve the market’s risk tone. That said, the USD/JPY, Gold and AUD/USD show a less reaction by the press time as traders await further clues after the US markets were off on Monday.