ADM optimistic on U.S.-China Phase 1 deal agriculture purchases

CHICAGO (Reuters) – Global grains trader Archer Daniels Midland Co remains optimistic that China will meet its Phase 1 trade deal purchase commitments despite the slow pace of buying to date and recent criticism of China by U.S. President Donald Trump.

Lower commodity prices due to the coronavirus pandemic may limit the value of China’s first year U.S. agricultural product purchases, “but it’s a two-year agreement,” ADM CEO Juan Luciano said during the virtual BMO Capital Markets Global Farm to Market Conference on Wednesday.

China promised to increase purchases of U.S. farm goods by at least $12.5 billion in 2020 and $19.5 billion in 2021, over the 2017 level of $24 billion.

(Reporting by Karl Plume in Chicago; Editing by Chizu Nomiyama)