"Reopening China to US poultry will create new export opportunities for our poultry farmers and support thousands of workers employed by the US poultry industry", US Trade Representative Robert Lighthizer said in a statement. Tyson Foods gained 2.1%, Sanderson Farms climbed 4.1% and Pilgrim's Pride Corp rose 1%.
China had banned all United States poultry and eggs since January 2015 due to an avian influenza outbreak, and imports tanked that year to a fifth of the US$390 million worth imported in 2014.
Chinese negotiators are resisting a proposal from American officials that it provide monthly, quarterly and annual targets for purchases, said the people, who asked not to be named discussing the private talks.
The stoppage originally occurred in January 2015 due to an outbreak of avian influenza, which led to a Chinese ban on all US poultry and eggs.
Prior to the ban in 2015, American poultry producers exported over $500 million in products to China. Big differences over China's technology policies were largely unaddressed and left for future negotiations.
"Today's development (on USA poultry) is definitely linked to the trade war and, though the progress is incremental, it is positive and resolves a longstanding irritant in the trade relationship", said Jeff Moon, a former US diplomat and trade official specializing in China who is now president of the China Moon Strategies consultancy. In addition, it is demanding the roll-back of existing US tariffs as part of any phase one deal.
Amid signs of easing tensions, the Chinese commerce ministry last week said the two sides had agreed on a plan to roll back tariffs in stages - only to have US President Donald Trump deny that any such plan had been made. White House trade hawks view those tariffs as a key source of leverage, as they attempt to pressure China to change the way it manages its economy.
A tariff cut is an "important condition" for the agreement that is part of talks on ending a costly trade war, said Commerce Ministry spokesman Gao Feng.