Just One Tweet Impacts Soybean Futures on Tuesday

May 21, 2019 02:47 PM
 
 

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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Comments

 
Spell Check

Fred T
Central, NE
5/22/2019 07:25 AM
 

  What exception will be made for prevent plant acres? A paid set aside would be more logical. Right now, I'd consider soybeans for that payment and I've never raised them before.

 
 
Alan Hoehne
Stanton, NE
5/22/2019 08:31 AM
 

  AgDay If you are truely for us farmers, don't reach out to USDA, reachout to the twit head "Mike Dorning" who said "sources told me this BS", and demand he reveal what source he got false news from and what source gives him the right to STEAL America agriculture blind and report it as FACT! When USDA obveously calls it baloney! The thing is ALL the Spec funds cannot get out with max profits if this thing goes LIMIT UP for three or more days in a row, (like it should be doing RIGHT NOW). What we did have is a 15.75 cent low to high move from May 17 to May 21 in December 2019 corn. If you cannot see the need for removal of the useless manipulated CBOT from our markets! You might be using a white cane!

 
 
JD
Northern Illinois, IL
5/22/2019 03:43 PM
 

  Thanks alot Mike Dorning you caused me to panic and sell most of my old crop beans yesterday.I am done listening to anymore of these Ass Holes that never worked a day in there life sitting behind a desk.

 
 

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