Monday June 1 Ag News

NEBRASKA CROP PROGRESS AND CONDITION

For the week ending May 31, 2020, there were 4.7 days suitable for fieldwork, according to the USDA's National Agricultural Statistics Service. Topsoil moisture supplies rated 2 percent very short, 9 short, 82 adequate, and 7 surplus. Subsoil moisture supplies rated 2 percent very short, 9 short, 84 adequate, and 5 surplus.

Field Crops Report:
Corn condition rated 0 percent very poor, 1 poor, 17 fair, 62 good, and 20 excellent. Corn emerged was 88 percent, well ahead of 62 last year, and ahead of 79 for the five-year average.

Soybean condition rated 0 percent very poor, 1 poor, 17 fair, 63 good, and 19 excellent. Soybeans planted was 95 percent, well ahead of 62 last year, and ahead of 78 average. Emerged was 73 percent, well ahead of 34 last year and 47 average.

Winter wheat condition rated 2 percent very poor, 10 poor, 24 fair, 57 good, and 7 excellent. Winter wheat headed was 41 percent, near 38 last year, but well behind 66 average.

Sorghum planted was 81 percent, well ahead of 32 last year and 56 average.

Oats condition rated 0 percent very poor, 6 poor, 26 fair, 63 good, and 5 excellent. Oats emerged was 94 percent, ahead of 85 last year, but near 95 average. Headed was 15 percent, ahead of 10 last year, but behind 27 average.

Pasture and Range Report:
Pasture and range conditions rated 3 percent very poor, 3 poor, 16 fair, 68 good, and 10 excellent.



IOWA CROP PROGRESS & CONDITION

Rain throughout the week resulted in 2.7 days suitable for fieldwork during the week ending May 31, 2020, according to the USDA, National Agricultural Statistics Service. Warmer temperatures advanced crop development.

Topsoil moisture levels rated 1% very short, 1% short, 78% adequate and 20% surplus. Subsoil moisture levels rated 0% very short, 1% short, 81% adequate and 18% surplus.

Iowa farmers have planted 98% of the expected corn crop, 2 weeks ahead of last year and 1 week ahead of the 5-year average. Corn emergence was at 93%, almost 3 weeks ahead of last year and 10 days ahead of the 5-year average. Corn condition improved to 85% good to excellent.

The soybean crop moved to 95% planted, 3 weeks ahead of last year and over 2 weeks ahead of average. Seventy-six percent of the soybean crop has emerged, 3 weeks ahead of last year and 11 days ahead of the 5-year average. Soybean condition rated 81% good to excellent.

Ninety-eight percent of the oat crop has emerged with 5% headed. Oat condition rated 83% good to excellent.

The State’s first cutting of alfalfa hay has been 16% completed, 5 days ahead of last year. Hay condition rated 74% good to excellent.

Pasture condition improved to 66% good to excellent. There was little stress on livestock although feedlots remain muddy.



USDA: Corn 93% Planted; Soybeans 75% Planted

Corn was 93% planted (Last Week 88, Last Year 64, 5 year average 89) and 78% emerged (LW 64, LY 42, 5yr.Ave 73) as of Sunday, May 31, and corn condition was rated 74% good to excellent (LW 70), according to this week's USDA NASS Crop Progress report.

Soybeans were 75% planted (LW 65, LY 36, 5yr.Ave 68) and 52% emerged (LW 35, LY 17, 5yr.Ave 44) as of Sunday, May 31, and soybean condition was rated 70% good to excellent (first rating of the season) according to the report. 

USDA pegs the winter wheat condition was rated 51% good to excellent (LW 54).


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On World Milk Day, U.S. Dairy Celebrates American Consumers
NMPF

While no one can say with certainty that the slow re-openings across the U.S. mark the beginning of the end of the COVID-19 crisis, it’s clear these attempts to return to a more normal existence mark the end of the beginning. The world is an experiment, both of science and of societies. Outcomes will remain uncertain for months.

But data can help draw a few conclusions. One from the consumer sector is that, in times of uncertainty, people turn to the bedrock items that they know will nourish themselves and their families. And dairy is an important choice.

Retail-sales as reported by consumer market researcher IRI over the past three months show that consumers have reacted to the coronavirus crisis first by stocking up on dairy, then by continuing to buy milk and other products at disproportionately high levels.

From March 8 to March 22, as stay-at-home orders and business closures proliferated nationwide, dairy products flew from store shelves. Milk sales were 43 percent higher than during the same period a year earlier. Yogurt rose 31 percent. Ice cream sales gained 40 percent and cheese 76 percent. Butter sales more than doubled during the same period.

Gains have continued into the “new normal,” and in fact take up more of a consumer’s retail dollar than they did during the panic peak. Retail dairy sales from late March through May 17 remain 25 percent higher than a year ago, while overall grocery sales during that same period are only up 14 percent -- meaning that at a time when people are relying more on grocers to fill their needs, they’re relying on dairy significantly more than they are on other products.

That vote of consumer trust shows every sign of continuing for the foreseeable future – and that shouldn’t be a surprise, really. When milk is already in 94 percent of U.S. households, it follows that it would be especially important as families choose how to weather a storm. This real-world, real-time affirmation of dairy’s value can’t help but inspire the entire dairy community to keep working and maintain resilience through whatever comes next. Dairy owes a deep debt of gratitude to consumers whose support has helped carry farmers through this crisis.

Of course, consumer faith has been only one part of dairy’s story in the past few months. Pre-coronavirus, about half of all dairy sales came from outside the home. Even as retail consumers increased dairy buying, sales to restaurants, schools and cafeterias plunged. That turbulence prompted sharp declines in the USDA’s forecast for milk prices for 2020. That’s been a big reason why federal assistance for dairy farms has been so important.

But even that story is brightening. A recent price rally is changing the outlook from mortifying to merely difficult – still cold comfort for many producers, but more manageable in a way many wouldn’t have dared to wish for even one month ago. Restaurant sales are slowly returning, and federal aid has provided a meaningful boost to bottom lines, even as signs of stress will still need to be monitored and additional aid will be necessary.

The past few months have been difficult for dairy, as it has for everyone. The next few will be as well. But dairy is resilient. Its value to consumers is beyond dispute, and early signs of recovery give reasons for hope. Today is World Milk Day. there remains much to overcome, there is also much to celebrate. Raise a glass.



DAIRY FARMERS OF AMERICA ASKS NATION TO SPREAD #GALLONSOFGOOD

With schools closed and community meal services suspended amid the COVID-19 crisis, the need for reliable, nutritious food is even greater for thousands of families across the country.

In response, Dairy Farmers of America (DFA) family farmer-owners have donated the equivalent of more than 625,000 gallons of milk to the many families faced with hunger who relied on these services over the past few months. Additionally, through the creation of the DFA Cares Farmers Feeding Families Fund, DFA and its farmer-owners are raising money to help provide essential support and deliver much-needed dairy products to community food banks across the country. To date, DFA has raised more than $500,000.

“With job losses, food insecurity and the need for additional supplies at food banks at an all-time high, we’re grateful for our family farmers, employees, industry partners and friends in the community for all they are doing in the midst of this pandemic to get dairy from the farm to the tables of those in need,” said Monica Massey, DFA executive vice president and chief of staff.

Starting on Monday, June 1, World Milk Day, DFA is encouraging everyone to join them in the Gallons of Good initiative. For every social post sharing what you’re grateful for using #GallonsOfGood during the month of June, DFA will donate $1 to help local food banks purchase milk through the Farmers Feeding Families Fund.

“In times like this, when people are trying to feed their families with sometimes scarce resources, they know dairy offers a wealth of nutrition, yet it’s one of the least donated items at food banks,” said Massey. “As a community of more than 13,000 family dairy farmers, we know initiatives like #GallonsOfGood are more important than ever to get more milk into the hands of people who need it most.”

To kick off the 20th anniversary of World Milk Day and spread the word about #GallonsOfGood, DFA is shining a light on all the dairy industry efforts with a video that’s all about dairy goodness. You can learn more and watch the milk jug fill as posts are shared all month long during June Dairy Month at GallonsOfGood.com.

Additionally, throughout June Dairy Month, DFA family farmers across the country will deliver more than 10,000 gallons of milk to local communities through milk giveaways, food drives, and donations to local food banks. Follow along throughout the month on @dfamilk on Facebook, Instagram and Twitter.



Celebrate June Dairy Month With Love Letters and Donations

Times are tough, but the dairy industry is resilient. Zoetis is encouraging dairy enthusiasts to celebrate June Dairy Month by giving them the opportunity to write love letters and notes of appreciation to the dairy industry, whether it’s a note of thanks to their on-farm staff, milk hauler or veterinarian, or a reflection on their passion for farming regardless of its challenges. Participation will also result in donations to The Great American Milk Drive — an initiative by Feeding America®  that aims to provide milk, a nutrient powerhouse, to food banks and families in need across the country. Milk is one of the most requested items at food banks, but often the least donated. As communities recover from COVID-19, there is opportunity to provide support when people need it more than ever. Here’s how it works:

Step 1: Enter a love letter.
Zoetis is asking those in the dairy industry — or anyone who simply admires dairy producers — to visit DearDairyLetters.com from June 1 through June 19, 2020, to write a love letter that is 300 words or less, showing appreciation for a person, place or thing in the dairy industry.

Step 2: Vote on a favorite.
Zoetis will choose the top ten letters, and the public will then have the chance to vote on their favorite at DearDairyLetters.com from June 23 to June 29, 2020.

Step 3: The top three letters win.
The writers of the three letters that receive the most votes will be gifted an illustration of their submission by the well-known Sunny Beach Farm Studio artist Larry Schultz, a prize as unique and special as the dairy industry itself.

Zoetis will donate $5 for every letter submitted and vote casted, up to $5,000, to The Great American Milk Drive. To get involved, visit DearDairyLetters.com or follow along on the Dairy Wellness Facebook and Twitter accounts.



Nebraska Beef Council Board Meeting June 2, 2020

The Nebraska Beef Council Board of Directors will have a zoom meeting at the NBC office in Kearney located at 1319 Central Ave. on Tuesday, June 2, 2020 beginning at 12:00 p.m. CDT. The NBC Board of Directors will discuss the election. For more information, please contact Pam Esslinger at pam@nebeef.org.   



Soil Residual Herbicide Options after Corn Emergence
Amit Jhala - NE Extension Weed Management Specialist

Application of soil residual herbicides is important because they deliver a few weeks of residual weed control and aid in weed resistance management by incorporating additional site(s) of action in herbicide program. Several residual herbicides can be applied after corn emergence without injury to corn. A Few important factors should be considered when addressing weed control with residual herbicides applied after corn emergence:
-    Corn growth stage,
-    Weed height, and
-    Tank-mix partner

Except some premix products such as Acuron, Harness Max, and Resicore with multiple herbicide active ingredients, these products generally do not have foliar activity and will not control weeds present at the time of application. Therefore, they should be tank-mixed with foliar active herbicides labeled in corn for control of existing weeds. Some of the herbicides, including Acuron, Anthem Maxx, Bicep II Magnum, Breakfree ATZ Lite, Degree Xtra, FulTime NXT, Keystone LA NXT, and Volley ATZ NXT contain active ingredients (such as atrazine) that has foliar activity. When applied at the correct weed growth stage, they will provide burndown activity. Growers should consult product labels for additional information, such as the need for tank-mix partners or spray additives to improve control of existing weeds. For example, the post-emergence activity of atrazine can be increased by including an oil additive, yet additives should not be used if applying Balance Flexx or Corvus after corn emergence.

Tank-mix partners may cause other effects regardless of the application timing. Follow application timing and other restrictions of tank-mix herbicide partner(s) as noted in the herbicide label. Length and effectiveness of residual activity from in-crop herbicide application will vary depending on:
-    Weed species present,
-    Application rate of herbicide,
-    Rainfall or irrigation following application (minimum of 0.5 inch within a week of application is ideal to activate residual herbicide),
-    Density of the weed and crop canopy at the time of application, and
-    Length of subsequent weed germination events.



Farmers Can’t Count on Exports. We Must Count on Ethanol, Says ACGF Chairman

“Counting on corn exports has always been a questionable strategy,” says Gale Lush, corn, soybean and wheat farmer from Wilcox, Nebraska and Chairman of the American Corn Growers Foundation (ACGF). “Problematic U.S. trade policy, aimed at China is attempting to protect intellectual property rights of big corporations, but has boomeranged against farmers, due to Chinese retaliation, that has led to their investment in competitor exporting countries. Corn exports are extremely unpredictable and it’s getting worse. Fluctuating currency values where the dollar has gotten stronger causes U.S. farm and manufactured goods exports to be more expensive in world markets. Given that reality our only serious demand growth strategy is ethanol. It is HOMEGROWN and untouchable by trade wars and a high dollar. Ethanol has been a major, annual domestic consumer of 5.5 billion bushels of corn. Ethanol is also a massive U.S. economic and infrastructure development strategy, if our political leaders will only get on-board and use it to its maximum potential. It’s already a proven success. The ethanol industry is a major economic driver for the rural economy. According to ABF Economics the manufacturing activity alone in the ethanol industry employed nearly 366,000 and contributed $14.5 billion to the U. S. economy in 2018. Ethanol is a net energy producer and helps clean the air by reducing toluene, benzene and other cancer-causing additives in gasoline. With modern high tech, low and no tillage farming practices, and cover crops corn farmers are improving the environment as well, while conserving and improving water quality as reported in a 2020 documentary by University of Nebraska Journalism students. “Land and Water: Farmers Adapt to Climate Change” is posted on the ACGF web site at WWW.ACGF.ORG.”

Lush added, “U.S. trade wars with China and other countries are causing corn and soybean production expansion in countries like Brazil whose currency, the Real, is making all kinds of lows against the U.S. dollar thereby making Brazil a stronger competitor in foreign import markets. South American countries are a clear example of this trend. Other countries are also taking advantage of the fact that a strong dollar makes U.S. commodities higher priced in the world market. This trend is further confirmation that U.S. policymakers in the Administration and Congress must recognize that ethanol expansion is not only an opportunity, it is an essential strategy to fix the rural economy. The Administration and Congress need to do what it takes to put a stop to oil refineries getting unwarranted ethanol waivers. That has to stop immediately.”

ACGF Director Dan McGuire said, “According to USDA’s Export Sales Report accumulated U.S. corn exports as of May 21, 2020 have only reached 1.1 billion bushels vs.1.56 billion bushels at the same time in 2019. USDA projects current marketing year 2019/20 corn exports to reach only 1.775 billion bushels, down from 2.065 billion bushels last marketing year and way down from the 2.438 billion bushels of exports reached in 2017/2018. That means corn exports this year will be 663 million bushels less than just two years ago. This weak export performance is what comes from trade wars.”

McGuire added, “The May 2020 USDA-WASDE report also projects 2020/21 marketing year ending corn stocks to be at 3.318 billion bushels, an increase of 1.220 billion bushels in just one year. It’s the largest level of corn ending stocks since 1987/1988. Current farm and trade policy resulted from big agribusiness and the globalization/free trade policies that their lobbyists created. Their overly optimistic predictions of high U.S. exports never materialized but it helped sell the policies they advocated to Congress in their plan to keep grain prices low. They also led the charge that created the World Trade Organization (WTO) to replace the General Agreement on Tariffs and Trade (GATT). They dismantled various farm programs during the 1980’s and 1990’s in favor of their current ‘export-oriented’ policy. They were wrong. Many of those same agribusiness organizations, along with wrong-headed environmental groups and big oil companies also fought a strong ethanol policy. Some still do. They are wrong on that issue as well. Without ethanol-driven corn demand growth over the past 20 years the U.S. farm economy would have been in a constant state of economic recession. Given the extreme economic stress that farmers and the rural sector are under now, it is time for agricultural and rural groups to aggressively speak up and push for a major expansion of ethanol blending in gasoline. We need a nationwide 15 percent blend immediately with a target of having a 30 percent blend nationwide as soon as possible. It’s the only sure way to drive up domestic corn demand, raise corn prices and farm income and help mitigate unreliable corn export demand.”



Is It Too Easy to Turn Irrigation Water On?
Steve Melvin - NE Extension Educator - Irrigated Cropping Systems

I have worked with irrigation management for almost 20 years. Today most farmers are doing a better job than when I started, however many still tend to over apply water -- leaving room for improvement. That left me wondering “Why” and “What could help more farmers apply the optimal amount of irrigation water?”

Each year, the Upper Big Blue NRD requires each farmer to use soil water monitoring equipment in one irrigated field, and to turn the data in to the NRD. After reviewing the data over the past few years, I found about 1/3 are doing a good job of applying the correct amount of water that will minimize deep percolation while producing top yields. The other 2/3’s could save some money and water without lowering yield. In fact, about 25% could save a lot!

Most farmers I work with try very hard to keep the cost of production as low as possible without compromising yield. So why do some spend extra money pumping more water then needed? Well, they apparently do not think they are pumping more water than needed. Every farmer has hundreds of decisions to make each day and when to start the next irrigation can become just another decision that needs to be made quickly before moving on. But think about this: if your fuel delivery guy pumped 500 gallons of diesel in your tank to fill it, and then pumped an extra 100 gallons that overflowed the tank, just to make sure it was full, how happy would you be with him? At a very real level, that is what many irrigators are doing when pumping water into the soil profile.

I wonder, is it just too easy to turn the irrigation water on? Many systems today can be started by just touching a button on the smart phone. If you had to go to the bank and take out eight or ten $100 dollar bills to feed into each pivot before it would start, would you want more information about the available water reserves in the soil? We all know the reason fast food restaurants started taking credit cards, right? Because it is well known that people will stop more often and spend more money if they can use plastic. Therefore, I suggest you consider for yourself: if you had to spend cold, hard cash to start the pivot vs. paying the cost when the bill comes later on, would you do anything different?

Consider spending more time and money to get good data and analyze it to make great irrigation scheduling decisions. Pumping water is the largest energy bill on most irrigated farms in Nebraska. In addition, over irrigating can carry some of your valuable inputs below the root zone. This is a leading cause of increasing nitrate level in the groundwater and can lower crop yields. For more information on yield losses take time to read the following NebGuide: Plant Growth and Yield as Affected by Wet Soil Conditions Due to Flooding or Over-Irrigation.

The Vision
Every irrigator can make excellent irrigation scheduling decisions by getting the right information and polishing their skills in analyzing the data. Today it is easier they ever to install equipment the will automatically record and help analyze the data before sending it to your computer or smartphone. Your diligence will be rewarded with higher profitability and protecting the environment.

First Steps
Many of you already use soil water monitoring equipment or ET data to make good decisions. The only thing you need to do is continue what is working and hone your analysis skills.

Now is the time to get the probes in the ground. While other tasks may seem more pressing, early installation of sensors is important to ensure proper operation during the later critical growth phases. Early installation helps to minimize root and leaf damage and makes it easy to get around the field with the pickup or ATV to install the equipment. Keep in mind that the plants next to the probes are an integral part of the sensor and must be protected so they can represent all of the other plants in the field. Do not install the sensors when the soil is wet and make as few footprints as you can to prevent soil compaction.

Support for People Wanting to Improve Their Irrigation Management
For those that have not collected data in the past or would like to hone your scheduling skills, take some time now to figure out what will work best for you. Many resources are available to help. A great five-part video series was recently recorded that can be found on the CropWatch YouTube channel at: How to Schedule Irrigations with Soil Water Data, https://www.youtube.com/channel/UCcgOn_vAFj8-e0WziVLPhSQ.

Other Cropwatch articles include:
  - Irrigation Sensor Installation Tips
  - Value of Using Sensors to Manage Irrigation and Tips for Proper Installation
  - Irrigation Scheduling: Checkbook Method
  - Soil Water Sensors for Irrigation Management
  - How Much Irrigation is Needed on Corn in the Vegetative Growth Stage?



USDA Grain Crushings and Co-Products Production

Total corn consumed for alcohol and other uses was 299 million bushels in April 2020. Total corn consumption was down 36 percent from March 2020 and down 39 percent from April 2019. April 2020 usage included 87.3 percent for alcohol and 12.7 percent for other purposes. Corn consumed for beverage alcohol totaled 4.14 million bushels, up 2 percent from March 2020 and up 12 percent from April 2019. Corn for fuel alcohol, at 245 million bushels, was down 40 percent from March 2020 and down 44 percent from April 2019. Corn consumed in April 2020 for dry milling fuel production and wet milling fuel production was 87.3 percent and 12.7 percent, respectively.

Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.01 million tons during April 2020, down 38 percent from March 2020 and down 45 percent from April 2019. Distillers wet grains (DWG) 65 percent or more moisture was 662,475 tons in April 2020, down 46 percent from March 2020 and down 51 percent from April 2019.

Wet mill corn gluten feed production was 231,145 tons during April 2020, down 21 percent from March 2020 and down 22 percent from April 2019. Wet corn gluten feed 40 to 60 percent moisture was 188,258 tons in April 2020, down 23 percent from March 2020 and down 26 percent from April 2019.

Fats and Oils: Oilseed Crushings, Production, Consumption and Stocks
Soybeans crushed for crude oil was 5.50 million tons (183 million bushels) in April 2020, compared with 5.76 million tons (192 million bushels) in March 2020 and 5.15 million tons (172 million bushels) in April 2019. Crude oil produced was 2.10 billion pounds down 5 percent from March 2020 but up 6 percent from April 2019. Soybean once refined oil production at 1.22 billion pounds during April 2020 decreased 21 percent from March 2020 and decreased 16 percent from April 2019.



USDA Announces Commodity Credit Corporation Lending Rates for June 2020

The U.S. Department of Agriculture’s Commodity Credit Corporation today announced interest rates for June 2020, which are effective June 1-June 30, 2020.

The Commodity Credit Corporation borrowing rate-based charge for June is 0.125 percent, same as in May.  The interest rate for crop year commodity loans less than one year disbursed during June is 1.125 percent, same as in May.

Interest rates for Farm Storage Facility Loans approved for June are as follows:
    0.250 percent with three-year loan terms, same as in May;
    0.375 percent with five-year loan terms, same as in May;
    0.500 percent with seven-year loan terms, down from 0.625 percent in May;
    0.625 percent with 10-year loan terms down from .0750 percent in May; and
    0.750 percent with 12-year loan terms, same as in May.




FY 2020 U.S. Agricultural Exports Forecast at $136.5 Billion; Imports at $130.2 Billion
USDA Economic Research Service

The COVID-19 outbreak has created a shock to world economies that will cause an unusually high level of uncertainty for the foreseeable future. U.S. agricultural exports in Fiscal Year (FY) 2020 are projected at $136.5 billion, down $3.0 billion from the February forecast, primarily due to reductions in bulk commodities including soybeans, cotton, corn, and wheat. Projections for soybean exports are reduced $1.9 billion from the previous estimate to $16.5 billion for FY 2020 due in part to increasingly competitive Brazilian exports. Cotton exports are forecast down $1.0 billion on lower volumes and unit values as the COVID-19 pandemic has reduced foreign demand. Corn exports are projected at $8.0 billion, down $500 million on lower unit values, which are pressured by ample exportable supplies and weak domestic use for fuel ethanol. The forecast for wheat exports is down $300 million to $6.1 billion, as larger global supplies and uncompetitive U.S. pricing reduce prospective volume. Livestock, poultry, and dairy exports are unchanged from the February projection of $32.4 billion, as stronger demand for pork and dairy products offsets a decline for beef and poultry products. The forecast for horticultural exports is unchanged at $35.5 billion.

U.S. agricultural imports in FY 2020 are projected at $130.2 billion, down $2.3 billion from the February forecast. This decline is primarily driven by expected decreases in imports of horticultural products such as beer, fresh fruit, and fresh vegetables.



China Halts Some U.S. Farm Imports, Threatening Trade Deal

Chinese government officials told major state-run agricultural companies to pause purchases of some American farm goods including soybeans as Beijing evaluates the ongoing escalation of tensions with the U.S. over Hong Kong, according to people familiar with the situation. State-owned traders Cofco and Sinograin were ordered to suspend purchases, according to one of the people, who asked not to be identified discussing a private matter. Chinese buyers have also canceled an unspecified number of U.S. pork orders, one of the people said. Private companies haven't been told to halt imports, according to one of the people.

Bloomberg News reports that the halt is the latest sign that the hard won phase-one trade deal between the world's two biggest economies is in jeopardy. While Chinese Premier Li Keqiang last month reiterated a pledge to implement the agreement that was inked in January, tensions have continued to escalate since then amid a standoff over Beijing's move to tighten its grip on Hong Kong.

Beijing's move eroded the risk-on sentiment that had been prevailing over markets. S&P 500 Index futures gave up gains to trade 0.6% lower, while U.S. 10-year bonds erased declines. The onshore yuan reversed its advance, while soybean futures in Chicago, which had been as much as 1% higher, were little changed.

The measures to halt imports come after President Donald Trump on Friday lobbed a barrage of criticism at Beijing after it moved to impose controversial new national security legislation on Hong Kong. Critics say it will crack down on dissent and undermine the "one country, two systems" principle that has kept Hong Kong autonomous of the mainland since the 1997 handover from the British.

Cofco and Sinograin are China's key importers of farm goods. They had been making pricing inquiries for 20 to 30 cargoes of U.S. soybeans on Friday but held off on going through with purchases after Trump indicated he would punish Chinese officials, one of the people said. Beijing is waiting to see what steps Trump takes before deciding its next move, one of the people said.

Nobody from the commerce ministry responded to a fax seeking comment. Officials from Sinograin and Cofco also didn't respond to calls, Bloomberg reports.

Trump said the U.S. would begin the process of stripping some of Hong Kong's privileged trade status, without detailing how many changes would take effect and how many exemptions would apply. He also promised sanctions against Chinese and Hong Kong officials "directly or indirectly involved" in eroding Hong Kong's autonomy, though stopped short of giving specifics.

Equity investors had reacted positively to Trump's remarks, as he didn't provide any details or time-frame for what actions might come next. It's unclear how soon the U.S. would move on a range of options, from sanctioning Chinese officials to imposing tariffs on Hong Kong to attacking the territory's financial stability.