PTT GROUP'S MARKET REPORT WEEK 4 JANUARY - CHINA MARKET

China and the US are discussing China’s reopening to the US chicken market


According to the Wall Street Journal, sources familiar with the negotiations on Thursday reported that US and Chinese trade officials are discussing China’s reopening of the market for American chicken.
The report pointed out that the US Department of Agriculture has recently told the US meat industry that it is discussing chicken products, which is part of a broader negotiation to resolve the tense trade relationship between the United States and China.
Earlier on Thursday, US Finance Minister Nuchin discussed the partial or total cancellation of tariffs on Chinese exports to the United States in the trade   negotiations scheduled for January 30, and suggested that tariffs be lowered to previous levels. .
The United States and China have been involved in fierce trade disputes for many months due to tariffs, industrial subsidies, intellectual property rights and cybersecurity.
The US Trade Representative Office promises to set a waiver mechanism for the next round of tariffs if Sino-US negotiations fail.

According to Bloomberg Consulting, the Trump administration promised the two senators that the government would set an exemption mechanism for the next round of tariffs to be imposed on Chinese goods. If the United States and China cannot reach a trade agreement by March 1, the United States will increase the tariff rate on Chinese goods for $200 billion from 10% to 25%.
Pennsylvania Republican Senator Pat Toomey and Alabama Democratic Senator Doug Jones asked the US Trade Representative Office to establish a mechanism to allow some importers to apply for exemptions when the new tariffs become effective. The United States has adopted a similar mechanism for tariffs imposed on approximately $50 billion of Chinese goods.
The Office of the US Trade Representative replied to Toomey and Jones that they would be allowed to apply for an exemption. “If the tariff rate on goods worth $200 billion is raised to 25%, the Office of the US Trade Representative will initiate an appropriate exemption process,”
the letter wrote in a letter dated January 11.
The Office of the Trade Representative said that the approval of the exemption application would be based on whether the relevant product could only be obtained from China, whether the tariff would “serious economic damage to the applicant company or the US interest” and whether the product was of strategic importance to make a decision.
There is no corresponding exemption procedure under the current 10% tariff rate for $200 billion in goods. Toomey issued a statement via e-mail saying that tariffs are detrimental to US consumers and workers. “Although I appreciate the Office of the US Trade Representative’s exemption process for the third batch of 301 investigations that have been taxed, I hope that the government and China can reach an agreement to end the newly emerging trade friction and withdraw these tariffs,” Toomey Said.
The United States loses another DDGS export market
According to US traders, the US’s export of corn distiller's grains to Thailand has been suspended because Thailand introduced a new fumigation standard after a corn distiller's grain was found on a ship last year.
Thai government officials said that US cargo requires a certificate to prove that the cargo is fully fumigated. Traders say sales have been suspended because the two governments are negotiating steam as the best way to fumigation.
According to data from the US Department of Agriculture, Thailand was the fourth largest export market for US corn distiller's grains in 2017, importing 738,413 tons of corn distiller's grains.
Osama El-Lissy, deputy director of the US Department of Agriculture's Animal and Plant Health Inspection and Quarantine (APHIS), said that in August and November 2018 Thailand had found beetles on two ships of US corn distiller's grains.
El-Lissy said that the Thai government has requested all cargoes to be fumigated with methyl bromide from January 1st. However, many shipbuilders in the United States prefer to use phosphine. He added that the US Department of Agriculture submitted relevant information to Thailand during the weekend.
A US corn distiller's spoiler said that he is currently unable to ship. Trade has been interrupted. 

For US ethanol producers, this may hurt its main export market. The supply of ethanol over the winter has forced many biofuel producers to cut production. China was previously the number one importer of US corn distiller's grains and ethanol, but due to Sino-US trade wars, China has basically suspended imports of US products. But demand from other regions of Asia and Mexico for US corn distiller's grains is relatively strong, boosting prices and helping ethanol producers make up for losses in the biofuels market.
According to traders, on Thursday, the price of corn distiller's grains transported by barge to the US Gulf region was about $176 per ton, down from $185 a week ago.
In 2017, Vietnam suspended the import of corn distiller's grains, because the Vietnamese government said that the US corn vinasse was infected with beetles. The ban was lifted after the US and Vietnamese governments reached a fumigation agreement.
Another US ethanol producer said that we can no longer lose a market
 

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