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Just One Tweet Impacts Soybean Futures on Tuesday

14:47PM May 21, 2019
Soybean Harvest (3)

Gleaner combine harvesting soybeans.( Jo Windmann )

Speculation is running rampant surrounding the second round of China tariff aid for producers and ranchers.

A single tweet from a Bloomberg reporter sent soybean futures tumbling on Tuesday.

Tweet From Bloomberg Reporter

AgDay reached out for a statement from USDA. A USDA spokesperson gave us the following comment: “Details on the new trade mitigation program will be forthcoming shortly, but we want to be clear that the program is being designed to avoid skewing planting decisions one way or another. Farmers should continue to make their planting and production decisions with the current market signals in mind, rather than some expectation of what a farming support program might or might not look like, based on a media story.”

USDA has said the entire aid package could cost up to $20 billion. Farm Journal Washington reporter Jim Wiesemeyer has said the plan is not expected to be based on this year's plantings or production, because officials don't want to skew the plantings. It's reported the payments would likely come in installments. It would be paid for through funds from the Commodity Credit Corporation.

The trade war between the U.S. and China escalated earlier this month, when the U.S. hiked tariffs from 10% to 25% on $200 billion of Chinese goods. China retaliated with more U.S. tariffs going into effect June 1st.

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