The Midwest farmers should have seen this coming - they probably thought Trump was joking about tariffs afyer what took place durinhg his term 1.
Soybean prices have already fallen from around $15 per bushel two years ago to around $10. Favorable weather conditions in major soybean-producing countries, including the U.S. and Brazil, has led to bumper crops and increased supplies.
As of Friday, commodity soybean futures on the Chicago Board of Trade are trading at around $9.73 per bushel.
Soybean’s Friday drop came as China announced that it would impose an additional 34% tariff on all American goods, starting from April 10, in response to President Donald Trump’s 34% levies on Chinese imports announced earlier this week.
Beijing has already imposed 10% to 15% on roughly $21 billion worth of agricultural imports from the U.S. Those tariffs have been in effect since March 10.
Last month, China’s General Administration of Customs also suspended import qualifications for three U.S. entities, effectively halting their soybean shipments to China.
“Whereas the impact of U.S. tariffs on China will hinge on how price sensitive firms and households are, in China’s state-dominated economy, firms can be simply instructed to stop buying,” Leah Fahy, China economist at Capital Economics, wrote in a Friday note.
Soybean Prices Tank on China’s Retaliatory Tariff. Beijing Already Has Shifted Suppliers.
Soybean prices have already fallen from around $15 per bushel two years ago to around $10. Favorable weather conditions in major soybean-producing countries, including the U.S. and Brazil, has led to bumper crops and increased supplies.
As of Friday, commodity soybean futures on the Chicago Board of Trade are trading at around $9.73 per bushel.
Soybean’s Friday drop came as China announced that it would impose an additional 34% tariff on all American goods, starting from April 10, in response to President Donald Trump’s 34% levies on Chinese imports announced earlier this week.
Beijing has already imposed 10% to 15% on roughly $21 billion worth of agricultural imports from the U.S. Those tariffs have been in effect since March 10.
Last month, China’s General Administration of Customs also suspended import qualifications for three U.S. entities, effectively halting their soybean shipments to China.
“Whereas the impact of U.S. tariffs on China will hinge on how price sensitive firms and households are, in China’s state-dominated economy, firms can be simply instructed to stop buying,” Leah Fahy, China economist at Capital Economics, wrote in a Friday note.
