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Peso may climb further on US-China trade talks

THE PESO may climb further on corporate flows and amid continued optimism regarding the trade talks between the United States and China.

The local currency closed at P51.58 against the greenback on Friday, gaining six centavos from its P51.64-to-a-dollar finish on Thursday.

Week on week, it strengthened by 15 centavos from the P51.73 close last Oct.4.

“The peso’s strength was on the back of positive developments coming from the US and China trade talks which commenced on Thursday. Corporate demand resurfaced which brought down the peso to a strong close,” a trader said in a phone call.

Aside from optimism due to the US-China trade talks, Rizal Commercial Banking Corp. (RCBC) chief economist Michael L. Ricafort attributed the peso’s performance to better global risk appetite.

US President Donald Trump on Friday outlined the first phase of a deal to end a trade war with China and suspended a threatened tariff hike, but officials on both sides said much more work needed to be done before an accord could be agreed.

This week likely be muted with holidays in the US and Japan coming up, according to the trader. “What will be the main driver will be corporate flows.”

RCBC’s Mr. Ricafort, on the other hand, expects that markets will continue to look for positive developments in the US-China trade talks ahead of the scheduled increase in US tariffs on Oct. 15.

For this week, the trader expects the peso to play around the P51.40-51.80 level, while Mr. Ricafort sees it trading within P51.30-51.80. — LWTN with Reuters

AllHome soars on positive sentiment after initial public offering

By Denise A. Valdez
Reporter

AFTER DEBUTING at the Philippine Stock Exchange (PSE) on Thursday and recording only two days of trading so far, AllHome Corp. was already one of the most actively traded stocks in the local bourse last week.

The home retail company of richest Filipino Manuel B. Villar, Jr. managed to record the highest volume and value of shares traded at the PSE from Oct. 7 to 11, trading a total of 29.71 million shares worth P342.2 million.

It closed the week with a share price of P11.54 each on Friday, down 0.17% or 0.02 points from Thursday’s maiden performance. But the value is still higher than its offer price of P11.50 apiece during its initial public offering (IPO).

AllHome’s maiden share sale followed those of real estate management firm Kepwealth Property Phils, Inc. and coconut products manufacturer Axelum Resources Corp.

“It continues to be the most active stock as positive market sentiment prevailed in the session after the start of the IPO,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message Saturday.

He added AllHome has an aggressive expansion plan slated for the coming year — a target of having 70 stores by end of 2020, or more than double its current 27 stores — making it an attractive company for investors.

When AllHome held a listing ceremony at the PSE Tower in Bonifacio Global City on Thursday, Vice Chairman Camille A. Villar said the company is looking at doubling by 2020 its market share in the home improvement sector from 7.1% today.

The company is investing P3.5-3.6 billion for capital spending until next year, which will fund its aggressive expansion program that will initially hit mostly Metro Manila and its neighboring towns.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said if AllHome succeeds in its plans, it is expected to meet a net income of P2 billion by end of next year.

“The company mentioned they plan on doubling their market share by aggressively expanding store footprint. Should they be able to meet these said projections, then the company will be able to readily meet its P2 billion net income projection for 2020,” he said in a mobile message Saturday.

Aside from the company’s independent plans, Mr. Limlingan said the lack of a strong catalyst to drive the stock market last week also came in favor of AllHome’s entry.

“Given the circumstances of a rather light trading month (P3.5 billion to P5 billion turnover), some negative macro economic developments (Sino-US trade war), the ongoing Middle Eastern conflict (Iranian oil tanker attacked in the Red Sea), and the lack of any local catalyst, AllHome is slowly being warmly received by investors as the stock managed to close the session slightly above its IPO price,” he said.

Mr. Limlingan added since AllHome is an affiliate of Vista Land & Lifescapes, Inc. (VLL), some investors seem to be taking interest in moving their eggs to different Villar-owned baskets.

“Its sister company VLL has been trading sideways to slightly lower for the week. Perhaps some funds are lessening their exposure in the company, switching from VLL to AllHome as investment management companies must be diversified,” he said.

For Philstocks Financial, Inc. Research Associate Claire T. Alviar, AllHome’s positive performance in the stock market was driven by its sustained interest from investors after pricing its shares at the lower-end of its indicative range when it held its IPO.

When AllHome announced in late September it is setting its offer price at P11.50 per share — the lower end of its range of P11.50 to P14, which was already down from its earlier target of selling at P16 apiece — the underwriters of the company said a lot of local and foreign investors expressed interest in AllHome during roadshows.

“AllHome was one of the actively traded stocks last week given its debut in the market and since AllHome looks attractive for the investors after it (was) priced at (the) lower-end of its given range,” Ms. Alviar said in a text message Sunday.

“Aside from that, investors are also looking at the bright prospects of the company as it disclosed plan of doubling the market share in home improvement retail industry in relation to its expansion plan,” she added.

Looking forward, Ms. Alviar said Philstocks is projecting AllHome to have a net income of P1.564 billion this year, supported by its strong sales from current stores on top of sales from new ones opening before 2019 ends. She projects resistance for the company’s stock at P11.56 and support at P11.48 per share.

For Diversified Securities’ Mr. Pangan, he said his projected net income for AllHome is P1.1 billion by the end of 2019. Resistance is seen at P11.62 with support at P11.42 per share.

Regina Capital’s Mr. Limlingan said support of stock for AllHome should stay at IPO price for now, or P11.50 apiece.

Versace boutique opens in Solaire

THE FIRST Versace boutique in the Philippines opened earlier this month in Solaire in Parañaque.

The store’s maiden collections are the brand’s 2019 Prefall and Fall collections, which, according to Vogue’s Luke Leitch, is the first men’s collection since the house was acquired by Michael Kors Holdings Ltd. (since renamed to Capri Holdings Limited), sharing an umbrella with Michael Kors and Jimmy Choo. Donatella Versace, sister of founder Gianni (who was assassinated in 1997) continues to sit as head of creative design.

The collection pays a homage to the brand’s heyday in the late 1980s and ’90s, containing references to the Italian Baroque patterns that made it look so bold, combining this richness with the gritty and sexy bondage scene, seen in patterns of belts, harnesses, and restraints printed on t-shirts and jackets.

Versace was brought in by Noble House Distribution Enterprise, under its Distinqt multi-brand concept store. According to Noble House’s website “Distinqt houses internationally acclaimed labels such as Tibi, N21, Versus Versace, MM6 by Maison Margiela, and Jil Sander Navy.” Aside from Distinqt, Noble House carries Aigle, Luminox, Paul & Shark Yachting, and Piquadro. It describes itself as “a young and growing company whose vision and mission is to introduce the Philippine market to unique, high-quality brands and to be the leading and trusted exclusive distributor and retailer of superior quality products.” — JLG

Weather-based crop insurance bill filed in House

A LEGISLATOR has re-filed a bill which seeks to create a weather-based crop insurance scheme for farmers to protect them from climate change and weather disturbances.

Las Piñas Representative Camille A. Villar’s House Bill No. 3310 has been proposed as the Free Index-Based Agriculture Insurance (FIBAI) Act of 2019.

“Weather index-based crop insurance (WIBCI) is a unique insurance product based on the occurrence of breach of a weather-based parameter, which serves as legal proof of the occurrence of extremely adverse weather conditions and proxy for the expected crop damage,” Ms. Villar said in a statement Sunday.

Weather-based insurance uses an index like rainfall “to determine payouts and these can be made more quickly and with less argument than is typical for conventional crop insurance.”

She said that this type of insurance will improve the mandate and current coverage of the Philippine Crop Insurance, Corp. (PCIC). “So far, it has too few participants and very miniscule outreach compared with the total number of farmers that are supposed to be served.”

“It maximizes the use of relevant technologies and networks in order to reach out to more and more farmers; and provides faster payout turn-around in the event of breach of the agreed parameters without need for bureaucratic processing by an adjuster. The hassle-free disbursement of claims is made possible through the use of technology and a widely distributed network of payment centers,” Ms. Villar said.

Ms. Villar said Congress has been appropriating an average of P1.55 billion each year to subsidize the PCIC insurance premiums on 600,000 hectares of rice farms in some provinces from 2013 to 2017.

“Still, against a total of almost P380 billion in palay production in 2014, the PCIC has been insuring only around P12.2 billion worth of crops annually or roughly 3% of potential insurable value,” she said, noting that some small farmers remain uninsured.

Another provision in the bill is the support for re-insurance to provide a second layer of insurance support to help the originating insurance providers absorb shocks from disasters.

This enables originating insurance providers to tap predictable financial relief and gives them greater capacity to insure more and more farmer clients and strengthen social resilience.

Ms. Villar said the bill will require P5.8 billion per year to be initially sourced from the Risk Management Fund.

A similar bill was also filed in the 17th Congress by Rep. Arthur Yap. It was approved on final reading by the House of Representatives but was not passed by the Senate. — Vince Angelo C. Ferreras

MCC sees nat’l ID as driver for credit card growth

DAVAO CITY — Metrobank Card Corp. (MCC), the credit card arm of Metropolitan Bank and Trust Co., sees the implementation of the national identification system as a driver for expanding its business, including in unserved areas of Mindanao.

Francis Ramon L. Tioseco, MCC first vice president, said Mindanao is among the biggest growth areas given the low penetration rate and the ID program will help them and other companies validate the credit capability of applicants.

“One of the things that we want to be able to do is to tap the unbanked, and hopefully credit card is one of the products that we can provide to more individuals, especially in Mindanao,” said Mr. Tioseco during Thursday’s launch of the NCCC Mastercard, a partnership between MCC and homegrown retail firm New City Commercial Corp.

For her part, Jocelyn Lim-Bata, MCC senior vice president for credit card sales, said while Mindanao has all the qualities of a growth area, they also need to carefully assess which parts are “serviceable.”

“We first need to understand if it is serviceable, so, obviously the level of economy that exists in that area because that creates the demand and the need for the product,” she said.

She added that other factors for considering expansion include the presence of merchants willing to partner with MCC and the presence of payment facilities.

Mr. Tioseco said one advantage they have is the bank has “a strong presence” in Mindanao.

Meanwhile, Joseph G. Uy, chief information officer of NCCC subsidiary LTS Pinnacle Holdings Inc., told BusinessWorld on the sidelines of the launch that they are targeting to enroll about 50,000 loyal customers to the NCCC Mastercard before the end of 2020.

Of the target, Mr. Uy said the “sizeable” number would come from the 275,000 NCCC Rewards Card holders, or the KaNegosyo customers.

He explained that it is easier for them to apply for a credit card because the value that they buy from the NCCC stores can be readily computed, providing the credit card company with a basis for granting the credit line.

“The good thing, and this makes the product more attractive, is that the banking industry is secured and it is hard to steal the account,” he said. — Carmelito Q. Francisco

Nissan teaches robots to make parts for cars

YOKOHAMA, JAPAN — Nissan has developed a new way to use robots to make car parts out of sheet steel, a breakthrough that could make replacement parts for discontinued models more widely available for customers.

Nissan hopes to commercialize the proprietary technique, known as dual-sided die-less forming. The technique involves two synchronized robots working from opposite sides of a steel sheet, using diamond-coated tools to gradually shape the steel.

Thanks to its flexible production, short lead times and minimal upfront costs, the new technique could make it commercially viable to produce and sell a wide variety of after-service and replacement parts in small volumes for cars that Nissan no longer makes. This was previously not possible due to the high upfront costs and long lead times to develop and make dies for stamped parts.

Until now, dual-sided die-less forming had been considered too difficult to commercialize. This was due to the complexity of programming two robots to operate synchronously while ensuring consistent quality. Existing techniques have primarily relied on single-sided forming, which limits the complexity of shapes that can be created. By placing robots and tools on opposite sides of a steel sheet, they can create more difficult and detailed shapes.

The new technique was made possible thanks to the production engineering expertise at Nissan’s Production Engineering Research and Development Center, along with advancements in materials technology by Nissan’s Research Division. It represents three major breakthroughs:

• The development of advanced programs capable of controlling both robots with a high degree of dimensional accuracy, enabling the formation of detailed convex and concave shapes.

• The application of a mirrored diamond coating to tools, reducing friction while eliminating the need for lubrication. This has numerous benefits, including consistency of surface quality and low-cost, environmentally friendly operation.

• The generation of optimized path-finding logic for robots, drawing on the ample expertise and press-forming simulation techniques ordinarily used by Nissan’s production engineering teams. This enabled Nissan to achieve high-quality results early in the development process.

Nissan plans to continue pursuing advancements in mass production while also dedicating R&D resources to honing its flexible low-volume production techniques.

Toyota’s Best Practices bag Gold awards

TOYOTA MOTOR PHILIPPINES Corp. (TMP) was bestowed Gold awards in the recently held Quality Circle Regional Convention (QCRC).The event was organized by the Quality Circle Practitioners Association, Inc. (QCPA), a nonstock, nonprofit organization which promotes the importance of quality management practices and continuous quality improvement.

This year, TMP was represented by two of its best quality circles — The Minions 2 and The Fixer. Under the Non-production category, The Minions 2 shared its best quality practice on improving workplace safety, efficiency and ergonomics. Under the Production category, The Fixer shared about implemented improvements in the process flow and efficiency of installing doors to the car body at the metal finishing line.

Both The Minions 2 and The Fixer were awarded with plaque and medals. TMP has been consistently receiving recognition for its best quality practices since it started joining the QCRC in 2006. In photo are members of The Minions 2 receiving their plaque of recognition from QCPA President Michael Domagas (2nd from left).

Market to remain cautious in wake of Friday gains

LOCAL SHARES may not have enough impetus to sustain last Friday’s gains, with developments in the Sino-US trade row expected to remain top of mind for investors.

After a fluctuating performance as investors awaited development on US-China trade talks last week, the Philippine Stock Exchange index (PSEi) gained 84.91 points or 1.09% on Friday to close at 7,849.94. Investors abroad, however, turned bearish, ending the day with P233.69 million in net foreign sales.

The main index closed the Oct. 7-11 trading period up by 1.89%, capping three straight weeks of decline.

Value turnover last week reached P36.54 billion, but trading volume was fueled by new listed firms Axelum Resources Corp. (9.93 million) and AllHome Corp. (29.71 million).

Integrated coconut products manufacturer Axelum made its trading debut last Monday, ending the week down 1 centavo or 0.22% to P4.50 apiece, while Villar-led home retailer AllHome also made its market foray on Thursday, closing Friday down 2 centavos or 0.17% to P11.54 apiece.

“The gains that we saw this week canceled out all the losses that we have seen in the last two weeks. Here at the PSE, a lot happened as we had two new companies list on the exchange… The main index ended with its biggest weekly gain since May,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in a market report.

He said that Friday’s rally kept the PSEi above the 7,750 support line, and is now watching whether it can break above 8,000. “Sellers may have walked away (last) week, except on Axelum, but we may see them come back once it hits 8,000,” Mr. Mangun said.

While US-China trade talks last week yielded some gains — with US President Donald Trump suspending a planned tariff hike and outlining the first phase of a deal that could end their trade war — Mr. Mangun warned that any resulting market cheer may be fleeting and may not be enough to sustain a lift this week. “The optimism on the trade talks with the US may be short-lived which means we may see the sentiment go sour again in the coming weeks. Investors are still trading on sentiment and, because of this, we may not see a solid rally moving forward,” he said.

For Papa Securities Corp. Sales Associate Gabriel Jose F. Perez, any development in trade talks between the world’s two biggest economies will be the primary driver of the local stock market for some time in the absence of any compelling local news. “Moves next week would likely be swayed by any developments in Trump and the Chinese vice-premier’s meeting soon,” he said in an e-mail Friday. “Resistance is only a few points away at the 7,900-8,000 mark.”

Mr. Mangun remains cautious, saying: “We do not think that the gains (last) week are enough to bring investors completely back into this market. These may be investors that are bargain-hunting as most stocks are at incredibly strong support levels.” — Denise A. Valdez

Some good stuff and a dud

By Zsarlene B. Chua
Reporter

Make-up Review
Shiseido Synchro Skin Self-Refreshing Foundation
Amway Artistry Studio Bangkok Collection
Avon’s True Power Stay 16-Hour Matte Lip Color

It’s been a while since I’ve done a makeup review because I am a creature of habit — while I do enjoy new things, I do tend to gravitate towards my usual system so for a product to replace one that is in my existing routine, it has to be good and it has to be consistent. Here are products from three brands: Shiseido, Avon, Amway Artistry Studio that wormed their way into my current regimen and some that I have to pass on.

But first, full disclosure: this writer loves skincare more than makeup and a regular makeup day would consist of a light base, blush, and lip color though I do have my moments when I want to go full glam, they are rare but they’re there.

With that out of the way, let’s talk about foundation. I recently got my hands on the new Shiseido Synchro Skin Self-Refreshing Foundation with SPF 35 PA++++ (P3,000 for 30 ml). The name is a mouthful and the claims are as well as this foundation is said to give a “lightweight… breathable, and buildable coverage for a full 24 hours,” according to a company release.

“It’s crease-proof, sweatproof, and doesn’t settle on lines,” Shiseido Philippine general manager Jen Yalung told BusinessWorld during the product’s launch in September. She said that it has a natural finish (not too dewy and not too matte) which is perfect for all skin types.

My skin currently rotates between dry and normal and because of it, I have always preferred natural, lightweight finishes than full coverage mattes because my skin needs its hydration and it suffocates under heavy layers leading to breakouts. So when I head the claims, I was immediately intrigued and put it to test the next day.

I have been using the foundation on and off for the better part of the month and on the days that I wore the Shiseido foundation, I felt I was having a very good makeup day. It blurred my pores and didn’t settle into the fine lines around my mouth. It didn’t crease and I almost never needed to powder halfway through the day. Did I love it? Yes, I did! It didn’t feel like I was wearing anything — it was that lightweight — and it stayed on a 12-hour workday.

Oh, and despite the claims that it will last for 24 hours, please be kind to your skin and wash it off at the end of the day.

As Shiseido is a luxury brand, the price point is as expected, and I do believe it can last pretty long as I can get by with just a pump of product for every application.

AMWAY ARTISTRY STUDIO BANGKOK EDITION
Back in February, Amway Artistry Studio released its Paris collection featuring lip and cheek stains which I loved, and an eyeshadow palette that I wasn’t that crazy over but still use occasionally. In September, it launched the follow-up, this time inspired by the bold colors of Bangkok.

The collection features a 2-in-1 Matte Lip Crayon in four shades (P1,080), an on-the-go face palette (P2,085), Kajal eyeliner in two shades (P1,080), shimmering cream eyeshadow in three shades (P1,265), and a mascara primer (P1,005). I would have to say that I enjoyed this collection more than Paris, especially the matte lip crayons.

I got two shades of the lipsticks — Spiced Goddess, which is a perfect my-lips-but-better-shade in brick red shade; and Rose Goddess which is mauve with gold glitter — and I loved both of them. Spiced Goddess is the perfect everyday color while the Rose Goddess is for when you’re feeling a bit fancier. Both last for a long time and can withstand a moderately oily meal (though I suggest you reapply). Since it’s a matte, it can be quite drying so put on a lip balm first before going to town with it. I also found that the Rose Goddess has a drier formula.

The on-the-go palette also got a ton of use over the past few weeks, especially the blushes — a coral and a pink one with glitter. I’ve been using it every day, with the pink one being used more often because it’s similar to the legendary Nars Orgasm blush — it lends subtle color and glow to your skin.

The eyeliner I got in Gilded Amethyst and Emerald Garden. I never touched the Emerald Garden because it felt too crazy for me but I did enjoy the amethyst: it is violet enough that it becomes the highlight of your look but is not gaudy. It also stays for a long time despite my often sweaty lids.

The one product I wasn’t too crazy about was the cream eyeshadow because it requires a bit of a learning curve to apply. During the launch last month, it was suggested to apply it using one’s fingers for more payoff but it never quite worked with me and I was left with glittery stained hands.

NOT QUITE RIGHT
Okay, of the things I reviewed in this article, Avon’s True Power Stay 16-Hour Matte Lip Color (P299 for 7ml) is the only one that I really didn’t like. It wasn’t that bad but since I’ve had better at a similar price point, I don’t see the value of using it.

It claims to last for 16-hours without retouching and is transfer-proof but in my experience — and the collective experience of a couple of editors who tried some of the shades — it never delivered on its promises.

It comes in eight shades from nudes to purples and I tried Relentless Rose which is a rosy pink shade, and Non-stop Nude, a brownish nude, for a couple of weeks and was not impressed.

For one, it doesn’t last long — it rubbed off after one meal and what was left behind was a cracked mess that settled into the lines of my lips which is never a good look. It also took a while to dry down.

I previously used Maybelline Superstay Matte Ink Liquid Lip (P249 for 5ml) and it makes similar claims — lasting 16 hours and all that — and it delivered. In fact, it was so hard to remove I had to exfoliate my lips just to get it off.

So, a word of caution, if you have dry lips, stay away from this Avon lip product. There are better options out there.

DMCI Homes completes construction of Taguig condominium

DMCI HOMES has completed a condominium project in Taguig City 10 months ahead of its July 2020 deadline.

DMCI Homes operator DMCI Project Developers, Inc. said in a statement late Friday it is now done with the construction works for its Maple Place residential condominium project in Acacia Estates, Taguig City.

“DMCI Homes declared the completion of the Boutique Hotel architecture-inspired project following the delivery of the last structure in the three-building mid-rise development, Spruce, last month,” it said.

The other two buildings of the 1.23-hectare Maple Place in Taguig City were also completed earlier this year.

DMCI reported in June it had already finished 10 condominium projects in the first half of the year, namely: Alea Residences’ Darma and Surya buildings in Bacoor City, Cavite; Torre De Manila in Manila; Zebrina building of Calathea Place in Parañaque City; Bluebird building of Bristle Ridge in Baguio City; and Fairway Terraces in Pasay City.

Completing the 10 are the Linden and Aspen buildings of Maple Place and the Adelfa and Abaca buildings of Ivory Wood, both mid-rise projects located in Acacia Estates, Taguig City.

DMCI Homes is allocating P17.9 billion for capital expenditures this year, 23% up from a year ago, as it wants to take on an aggressive expansion in and out of Metro Manila to reach Cebu and Davao.

The company booked a core net income of P1.19 billion in the first half, up 5% from a year ago, due to lower project development costs.

Its parent, diversified engineering conglomerate DMCI Holdings, Inc., meanwhile dropped 22% to a net income of P6.7 billion due to weaker revenues from its coal mining and nickel mining businesses. — Denise A. Valdez

AUB gets second-highest rating

ASIA UNITED Bank Corp. (AUB) was awarded the second-highest credit rating by a local debt watcher due to its continuous profitability and strong management support.

The listed bank received a PRS Aa plus (corp.) credit rating with a stable outlook from Philippine Rating Services Corp. (PhilRatings), based on a statement by the latter over the weekend.

The PRS Aa rating means AUB only differs “to a small degree” versus those rated the top “PRS Aaa” rating, and the “plus” means it is further qualified. Having a stable outlook also means its credit rating may likely hold for the next 12 months.

“The issuer rating takes into account AUB’s: a) highly-experienced management; b) competitive strategy, which is in line with its growth targets; c) its robust profitability, backed by sound management of expenses and continuous growth in interest income; and d) satisfactory funding profile,” PhilRatings said.

It added it also considered the favorable outlook of the banking industry despite the generally slower growth of the domestic economy.

PhilRatings said the bank’s chairman and chief executive officer, Abraham T. Co, has multiple years of experience in the banking and finance sector, making him a trustworthy leader of the company. AUB President Manuel A. Gomez was also noted for his two decades worth of experience in the industry.

AUB’s balance sheet was commended by the debt watcher, saying the bank’s deposits accounted for 92.6% of its total liabilities last year. The share of current and savings accounts (CASA) to total deposits also ended at 75% in 2018.

“Forecast shows that CASA will continue to comprise bulk of the bank’s deposits, going forward,” it said.

The bank’s financial results in the first half of the year was also accounted for by PhilRatings. It said the 63.3% rise in its net income to P2.6 billion in the six months to June reflects the company’s continuous profitability. It also recorded a 25.1% increase in net interest income to P4.5 billion and 68.4% jump in other operating income to P1.5 billion during the same period.

“Over the projected period, AUB is well-positioned to sustain its performance as interest income will remain the primary growth driver, as the bank intensifies its commercial and consumer lending activities,” the debt watcher said.

“AUB will continue to anchor its competitive strategy on its modern technology platform, expanding branch network, and highly-experienced management team,” it added. — Denise A. Valdez

China buys more US soybeans, record volume of pork ahead of trade talks

CHICAGO — Chinese importers stepped up purchases of U.S. agricultural goods ahead of high-level trade talks in Washington, including another wave of soybean deals and the country’s record largest weekly purchase of American pork, U.S. data showed on Thursday.

Private exporters sold 398,000 tonnes of U.S. soybeans to China, the Department of Agriculture (USDA) reported via its daily sales reporting system that tracks large purchases. It was the second daily “flash sale” of soybeans this week to the world’s top soybean importer.

USDA also confirmed a net 1.18 million tonnes in soybean sales to China in the week ended Oct. 3 and record-large sales of pork, including 18,810 tonnes for shipment this year and 123,362 tonnes for shipment in 2020.

The flurry of deals came ahead of high-level US-China trade talks in Washington that started on Thursday aimed at ending a 15-month trade war that has rattled global markets and slashed US farm product exports to the world’s top commodities importer.

US pork sales to China, the world’s biggest hog and pork market, had been largely disappointing this year following forecasts for massive purchases. Chinese domestic prices are soaring as the deadly African swine fever virus has decimated the country’s hog herd, tightening supplies of China’s favorite meat.

“Nobody’s ever seen these kinds of (pork sales) numbers,” said Bob Brown, an independent US livestock analyst. “Our prices right now are pretty modest especially compared to Europe in particular, which is their other big supplier.”

China has imposed steep tariffs on imports of American pork in retaliation for US duties on Chinese goods, but US prices still look attractive despite the current 72% tariff, traders said.

US soybean sales have also accelerated ahead of the talks in Washington this week in at least four waves of active buying since early September. Beijing awarded some importers waivers to buy US beans that allow imports without steep retaliatory tariffs. China imported more than 13 million tonnes of US soy in the 2018/19 marketing year that ended Aug. 31 and has bought nearly 5 million tonnes more in the current season, according to USDA data.

The sales, however, are far short of the 30 million tonnes or more that China imported annually from the United States before the trade war. — Reuters

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