US wants to diversify commodity exports away from China // Largest Orange Juice Producers in the World // Emerging Markets Fund Flows not overstretched yet
US wants to diversify commodity exports away from China // Largest Orange Juice Producers in the World // Emerging Markets Fund Flows not overstretched yet
The Commodity Report #91
Welcome to another 39 people who subscribed to the Commodity Report during the last week, bringing the total subscriber count up to 4.840.
Largest Orange Juice Producers in the World
The world's orange juice production is carried out by only three countries. Among these countries, the United States is one of the major orange juice producers, with Florida being the leading producer. Oranges are picked and processed within a day to maintain their freshness and quality before they are packed and sold. Despite being a significant producer of orange juice, Florida has experienced a 90% decline in orange production from its peak levels in the 1990s.
The US wants to diversify commodity exports away from China
The chief agricultural trade negotiator of the United States, Doug McKalip, is urging China to continue its efforts to fulfill the farm goods purchase commitments agreed upon in the 2020 "Phase 1" trade deal. However, he is also working to expand exports to markets beyond China in order to diversify the customer base for U.S. agricultural products. McKalip emphasized that his primary goal is to open up new markets for these products. Despite this, he acknowledged that China will remain an important customer for the United States, as evidenced by the fact that it accounted for almost a fifth of global U.S. farm exports, which reached a record-breaking $213 billion in 2020.
In addition, McKalip has asked Mexico to provide scientific explanations for its ban on genetically modified corn. He has also urged Canada to expand U.S. access to its dairy import quotas to resolve a separate U.S. trade challenge.
Inflation Remains Sticky // Intermarkets #3
In this week’s episode, I look back at the inflation numbers we received last week and put them into perspective. The FED has to change course AGAIN.
Watch or hear it on Youtube Video or Spotify Podcast.
Meanwhile, the latest cover story by the Economist provides us with another great contrarian signal. Perhaps inflation will decline faster from here onwards after all.
Emerging Markets Fund Flows not overstretched yet - BUT
Just looked at the latest BofA survey and what catches my eye is the stretched net overweight in Emerging Markets positioning. Nevertheless, looking at the Fund Flow model – relative flows have more room to rise—something to keep in mind – perhaps time for “just” a correction.
Check this out as well
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This week look out for the following:
Bank Holiday on Monday
Flash Service and Manufacturing PMI on Tuesday
Existing Home Sales on Tuesday
Prelim GDP numbers on Thursday
Core PCE Price Index on Friday
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Till next Monday, Lukas
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