Grains Drop With Trump-Xi Summit Yet to Offer Farm Trade Details

(Bloomberg) -- Chicago grains fell at the open as traders were left waiting for concrete news on agricultural trade with China from the presidential summit in Washington.

US President Donald Trump is hosting his Chinese counterpart Xi Jinping for a state visit, which was capped by dinner at the White House on Thursday. Earlier in the day, Trump said the two leaders had made "tremendous strides" on efforts to expand US access to the Chinese market under the newly-created Board of Trade. But some found the lack of specifics disappointing.

"It is not great for the farmers and bulls who were looking for additional grain and oilseed purchase announcements," said Joe Davis, a director of commodity sales at Futures International LLC.

The US and China have discussed cutting tariffs on certain goods, including American agricultural and energy products. Traders expect more Chinese purchases if duties on crops, from soybeans, to corn and wheat, are removed.

Chinese state-owned buyers have stepped up purchases of US soybeans, and are over halfway toward Beijing's target to import 25 million tons annually, a pledge that runs through 2028. But progress on a wider goal to buy at least $17 billion of US agricultural products has been slower.