Tariffs
Tariffs, also known as taxes on imported goods, are a tool used by President Donald Trump as part of his overall economic vision. As U.S. agriculture navigates tariffs and their implications on trade, commodity prices, input costs and more, ag economists and farmers remain divided on the effectiveness of tariffs and what the changes mean for the broader economy and livelihoods.
Steve Censky, chief executive officer of the American Soybean Association, says unless China buys soybeans soon, they may be looking at aid similar to the Market Facilitation Program used back in 2018-19 during the last trade war.
Rich Nelson, Chief Strategist with Allendale, Inc. says corn was lower Wednesday, seeing some profit taking after getting overbought but the rest of the grain and livestock complex were also lower.
Even with talk of shrinking soybean yields due to the dry weather pattern that shut out rain for much of the Midwest and Mid-South in August, one fact remains: China still isn’t buying U.S. soybeans.
Mike Zuzolo, Global Commodity Analytics, says soybeans saw risk off selling as China aligned itself with Russia and India, which signals no deal between the U.S. and China any time soon.
Brad Kooima of Kooima Kooima Varilek says live and feeder cattle futures are back into new contract and all-time highs after showing considerable resilience last week and despite a selloff in the equities. Grains sell off on tariff concerns.
The Chinese government is continuing to instruct importers to avoid purchasing U.S. soybeans. Until that changes, soybean prices are likely to remain low.
The Trump Administration outlined plans to implement a 50% tariff on products from India.
A new trade rule that went into effect Aug. 18 is already restricting the flow of steel-based farm equipment into the U.S. from manufacturers and dealers based north of the border. Here is one Oklahoma farmer’s doozy of a tale.
China, the world’s largest soybean buyer,is turning to Brazilian cargies amid trade tensions with the U.S. and ongoing negotiations.
Arlan Suderman, chief commodities economist with StoneX, Inc., says soybeans led the rally with nearly 24-cent gains in November on hopes for China export business. But the market may have gotten ahead of itself.