Page 25 - ARUBA TODAY

BUSINESS Thursday 19 april 2018
A25

U.S. sorghum growers fear China

tariffs could cost them dearly

By JOSH FUNK Bloss said the tariff news in crop rotations with corn
AP Business Writer isn’t enough for him to and in areas where condi-
OMAHA, Neb. (AP) — change what he plants this tions are dry because it is
American sorghum farmers year, but farmers will have drought tolerant. But it is a
fear they will lose their larg- to adjust if the tariff is en- smaller U.S. crop, grown on
est export market if China acted. about 6 million acres com-
follows through with a tariff “We can’t make real quick pared to corn and soy-
on their crop. decision,” he said. beans, which will each be
China imposed preliminary It won’t be easy replacing planted on nearly 90 million
anti-dumping tariffs of 178.6 the Chinese market. Last acres this year.
percent on U.S. sorghum year, Chinese buyers pur- Both U.S. Agriculture Secre-
this week as part of its on- chased more than 90 per- tary Sonny Perdue and the This Wednesday, Aug. 15, 2012 file photo shows sorghum at a
going trade dispute with cent of the 245 million bush- National Sorghum Produc- farm in Waukomis, Okla.
the U.S. els of sorghum America ex- ers association said they Associated Press
President Donald Trump ported. may challenge the tariff. fell 20 to 25 percent af- export markets or ethanol
has threatened to raise tar- “Basically, this will shut off “Our sorghum producers ter China announced in producers. Having lived
iffs on up to $150 billion of grain sorghum exports are the most competitive February it was launching through the effects U.S. tar-
Chinese goods to counter- to China for the United in the world and we do not an investigation into the iffs on Russia had on grain
act what he says are that States,” said Mark Welch, believe there is any basis in sorghum trade. Prices de- markets in the 1980s helps
country’s unfair trade poli- an agricultural economist fact for these actions,” Per- clined again this week. give the 69-year-old Bloss
cies. at Texas A&M University. due said. In the long run, Bloss said confidence.
Sorghum farmers like Don Sorghum, which is used pri- A spokeswoman for the he believes farmers will find “There’s going to be market
Bloss in southeast Nebraska marily as animal feed and sorghum producers trade a new market for their sor- opportunities out there,” he
are caught in the crossfire. in liquor distilling, is grown group said sorghum prices ghum, whether that’s other said.q

Stocks end modestly higher as earnings come in; oil surges

By ALEX VEIGA more consistent evidence its earnings outlook for the
AP Business Writer of strong earnings.” year. Best Buy added 3.6
US stocks finished broadly The S&P 500 index rose percent to $75.40 after an-
higher Wednesday, giving 2.25 points, or 0.1 percent, nouncing a partnership to
the S&P 500 its third gain in to 2,708.64. The Dow slid sell Fire TVs with Amazon.
as many days. 38.56 points, or 0.2 percent, IBM was the biggest declin-
Energy companies rose to 24,748.07. The Nasdaq er in the S&P 500, sliding 7.5
more than the rest of the composite gained 14.14 percent to $148.79. That’s
market, riding a big upturn points, or 0.2 percent, to its biggest loss in five years.
in crude oil prices. Solid 7,295.24. The Russell 2000 The technology company’s
gains in industrial stocks and index of smaller-compa- results failed to impress in-
retailers outweighed losses ny stocks picked up 3.76 vestors.
among food and bever- points, or 0.2 percent, to Oil futures surged, pushing
age companies, technol- 1,583.56. closer to $70 a barrel. The
ogy stocks and banks. The major stock indexes pickup in the price of crude
Investors continued to bid are all on track to finish the In this April 5, 2018, file photo, the facade of the New York Stock came as Reuters published
up companies that report- week higher. Exchange is shown. a report citing unnamed
ed positive earnings or out- Bond prices fell. The yield Associated Press industry sources saying
looks. Not all companies on the 10-year Treasury tations that last year’s cor- to S&P Global Market Intel- that Saudi Arabia would
delivered welcome results. rose to 2.87 percent from porate tax cut will have on ligence. be happy to see crude oil
IBM slumped 7.5 percent, 2.83 percent late Tuesday. corporate balance sheets. Railroad operator CSX prices hit $100 a barrel.
single-handedly pulling the Investors continued to sift Roughly 10 percent of the jumped 7.8 percent to Benchmark U.S. crude rose
Dow Jones industrial aver- through corporate earn- companies in the S&P 500 $61.01 and aircraft maker $1.95, or 2.9 percent, to
age into the red. ings reports. Financial ana- have reported results so far Textron climbed 6.8 per- settle at $68.47 per barrel
“Earnings are the principal lysts are forecasting the this earnings season, and cent to $63.99 after report- on the New York Mercan-
thing this week,” said Paul strongest growth in seven some 67 percent of those ing results that beat ana- tile Exchange. Brent crude,
Christopher, head of glob- years for S&P 500 compa- have delivered both earn- lysts’ forecasts. used to price international
al market strategy for Wells nies, partly because of a ings and revenue that ex- United Continental rose oils, added $1.90, or 2.7
Fargo Investment Institute. resurgent global economy, ceeded financial analysts’ 4.8 percent to $70.58 after percent, to close at $73.48
“The market wants to see but also because of expec- expectations, according the airline company raised per barrel in London.q