On Tariff Anniversary, Soybean Farmers Are Struggling Even as Prices Recover
Soybean prices gained after China imposed tariffs on agricultural products from the United States.
Chicago futures are once again above 12-month levels. The prices were low even before the US-China tensions arised.
The trade war has cost US producers their biggest customer because of which the industry is struggling to find new buyers to fill the hole left by China. There are record amounts of beans, containers and bags throughout the heart of the United States.
From October 2018 to March 2019, a period covering the seasonal peak of US soybean exports. In the United States, China imported 21.7 million metric tons less of the oilseed in the United States, than the previous year and bought 11.5 million more tons of Brazil, according to the Department of EE.
Both farmers and American traders continue to pay close attention to the signs of a resolution. While the market reactions to each of the leaders of the trade talks have slowed as participants await solid evidence of progress.
Compensation payments are helping to cushion the blow, but producer groups say they prefer trade and not aid.
A Kentucky farmer said that they are facing the first anniversary of the rates, as they have not made any progress in the 12-month period.