Big grain agreements with China return to the Midwest

Representatives from China were in the heartland this week.

On Sunday, a delegation that included China’s Ambassador to the U.S. Xie Feng, (ZHAY- Fehng), visited the Rick Kimberley farm in Maxwell, Iowa. The farm is the site of the 2012 visit by then Vice President of China Xi Jinping. 

The following day, Feng watched as 11 letters of trade intent were signed by U.S. and Chinese soybean processors at the China-U.S. Sustainable Agricultural Trade Forum. U.S. processors ADM and Bunge signed purchasing agreements with Chinese processors China Agri and Sinograin Oil.

Ambassador Xie Feng, Embassy of the People’s Republic of China in the U.S.A.: “People are the foundation of a nation and food is of  paramount importance.

The actual monetary value of the agreements was not released but the news of the prospect for billions of dollars in trade moved the commodity market slightly higher.

Later in the week, Chinese Vice Governor Jin Hui (Gin-WAY) of Hebei Province also visited the Kimberley farm. Iowa and Hebei have had a sister-state relationship for 40 years. 

Rick Kimberly - Maxwell, Iowa: “This is an honor for us to welcome you to our home and the whole delegation. We are so happy that we have been able to get together again.”

Vice Governor Jin Hui, Hebei Province: I believe we will be impressed by the things you will show us and we will get back to China about your things here. And we will promote more friendly exchanges and cooperation in the future.

Along with sitting in the same tractor where Chinese President Xi Jinping sat more than a decade ago, Hui was given the opportunity to drive one of the Kimberley’s tractors.

Later in the day, Hui witnessed the signing of  trade memorandums of understanding between groups including ADM and China’s food grade oil processor Hopefull Grain & Oil. The value of these agreements also was not disclosed.

For Market to Market, I’m David Miller.