U.S. - China Trade War Pt 1
From the Ag Information Network, I’m Bob Larson. Tariffs are a big concern in all segments of agriculture, including the commodity markets, where traders are closely watching developments.
Mike Zuzolo (ZOO-zoh-low) of Global Commodity Analytics says tariff worries likely aren’t priced into the markets yet and will circle back around to the soy complex.
Zuzolo says there's probably a sense that they're going to come back in, but the trade war with China is officially underway …
ZUZOLO … “I don't think that we're going to see China back down anytime soon at this point. The U.S.-China trade war is now pretty much in full effect, and so the trade is still working from a mindset, I think, they believe that there's going to be a trade deal and that President Trump is not going to do this.”
But, Zuzolo says he’s not so sure …
ZUZOLO … “I'm very much a contrarian because of all the people that he has working on his economic policy.
Almost all of them come from the same background of the middle part of the country and have seen their towns or cities hollowed out, manufacturing hollowed out, and I think the proof is in the pudding at this point of what he's willing to do, even if it means, as he would say, short-term pain for long-term gain.”
Tune in tomorrow for more on the trade war with China and how we got here.
Mike Zuzolo of Global Commodity Analytics.
For more information, go to globalcommresearch.com(Link is external).
