Agriculture-related exchange traded products are receiving a nice boost with some of the previous uncertainty dissipating after China said it will exempt agricultural products form additional tariffs on U.S. goods.
The Teucrium Soybean Fund (NYSEArca: SOYB) was up 0.1% Friday after rising 3.2% in the previous session, while iPath Series B Bloomberg Livestock Subindex Total Return ETN (NYSEArca: COW), which includes exposure to lean hogs, was 0.6% higher after gaining 4.0% in the previous session.
In a bid to de-escalate a protracted trade war with the U.S., China has made a conciliatory gesture by renewing purchases of U.S. farm goods while U.S. President Donald Trump pushed off plans to increase tariffs on Chinese goods, Reuters reports.
China previously imposed additional tariffs of 25% on U.S. agricultural products including soybeans and pork in July 2018. Beijing raised tariffs on soybeans by another 5% and on pork by an additional 10% on September 1.
“China supports relevant enterprises buying certain amounts of soybeans, pork and other agricultural products from today in accordance with market principles and WTO rules,” Xinhua said Friday, adding that the Customs Tariff Commission of China’s State Council would exclude additional tariffs on those items.