Commodity Exchange: China’s US Pork Import Down
COMMODITY EXCHANGE – On Friday, a data from customs revealed that China’s imports of US pork dropped to more than half. In 2018, China’s import of pork from the United States declined to 263,000 tons. Further, this was after China’s imposition of hefty tariffs on the meat as retaliation in the trade war.
Further, there was a 55% drop across both quality cuts and offal. Previously, the United States accounted for about a third of China’s imports. Based on the General Administration of Customs’ data, there was 58% to 177,041 tons decline in the US offal shipments. This was according to Reuters calculations.
China is the world’s main buyer of pig parts, particularly feet, ears, elbows, and innards. Moreover, this provides US processors a source of revenue since those aforementioned items can barely sell such products at home.
In 2017, American processors sold nine out of every 10 pigs’ feet globally and delivered to China. Further, this is along with the $874 million worth of total offal shipments to China in 2017 based on the industry and customs data.
Globally, China is the largest producer and consumer of pork. Further, the country considers pork as its most popular meat. China is also the top global importer and boosts its supplies with more affordable pork from abroad. Moreover, the country’s total import worth was about $4 billion in 2017.
But the US pork sales to China slipped after China imposed two rounds of trade tariffs in 2018. Beijing had taken total duties on frozen American pork to 62%.
Deriving from some smaller suppliers, China boosted offal supplies. Meanwhile, there was an increase of 150,116 tons in the import of higher value pork. This was according to the customs data.
Commodity Exchange: Oil strengthens as Venezuela faces US sanctions
On Friday, oil prices advanced in Asia after reports revealed that the US government was considering sanctions against Venezuelan oil.
The sanctions intended to serve as a punishment against the government of President Nicolas Maduro. Further, this was after the country withdrawn its diplomatic ties with the United States amid the South American country’s leadership crisis. This was according to several media.
After the release of the news, there was an increase of 1.3% to $53.85 per barrel in the Crude Oil WTI Futures. Meanwhile, the global oil benchmark Brent Oil Futures increased by 1.23% at $61.84.
Meanwhile, John Kilduff is the founding partner at New York energy hedge fund Again Capital. He expressed doubt about the decision of the Trump administration to impose sanctions on Venezuelan oil.
“If the sanctions are on, they would no doubt be a big blow to the commercial transportation sector, precisely the airlines, truckers and railroads, 100%. WTI is not exactly reflective of that. But at the end of the day, if it’s just crude headlines the market is looking at, then yes, there’s a reason to hold WTI up, although it’s a case of apples and oranges,” Kilduff said.