Trade representatives are meeting to review a major North American trade deal.
US trade representative Katherine Tai is headed over to Mexico City to chat with her counterparts from Mexico and Canada to celebrate the first anniversary of the USMCA. The meeting will cover views on the achievements reached and opportunities to ensure long term growth of trade.
The USTR office says it will continue conversations from the Free Trade Commission in May as well as show how the three countries are working together as allies to create a resilient and competitive economic partnership. The USMCA replaced the North American Free Trade Agreement and went into force on July 1, 2020.
Pandemic food spending
During the pandemic Americans spent less of their income on food. According to the USDA Economic Research Service, during the pandemic and economic recession in 2020 the share of personal income spent on food went down about 10%. That would be the lowest share in the last sixty years.
For 20 years the average percent of money for food was steady, but over the past year there was a huge decrease in out of home food places. Americans spent around 22 percent less of their incomes on food at places like restaurants or fast-food places. Overall consumers spent about one and a half percent more at supermarkets.
A look at the markets
Analyst Don Roose has the start of the week markets:
“It is a shortened week this week on the grain market it is a risk off type of market, the trade looks at the fourth of July as a marker, is the crop getting bigger or smaller and the cooler wetter forecast aimed to the middle of July as we start pollination is really causing a risk-off type of trade. We also have the July 12th type of trade on the forefront, but over the three day weekend while we weren’t trading, asia was trading today we’re down 17 cent on corn, 17 cents on soybeans so risk off trade for right now for improved weather was the dominant issue in the grain market, the cattle market is trading much the same as the direction of the grain market. We are seeing feeder cattle because of the sharply lower corn price giving sharply lower to feed cattle but we are taking grain premium off of the cattle market on the front months. The hog market, much the same on the cattle markets taking grain risk premium off of the market, and I think the main question the market has is China going to continue to buy U.S. pork, second largest buyer so far this year or are they going to take domestic supplies and prop them up internally which is what they’re doing short term so its a market that is seasonally tries to stall out on the hogs.”
There’s a major chicken recall nationwide from the USDA. Tyson foods is recalling around 8.5 million pounds of chicken that could be contaminated with a bacteria. The frozen, but fully cooked chicken, products were shipped nationwide and produced between December 26th 2020 and April 13 2021. The Food Safety and Inspection Service says two people were ill from the bacteria and linked it to the Tyson chicken products.