According to The Wall Street Journal, soybean prices fell to their lowest point in two years yesterday in response to President Trump’s mounting trade war with China. Soybeans make up nearly a quarter of Missouri’s commodity exports, so the recent price drop presents a serious problem for the state’s farmers — especially after one of their biggest customers stopped buying American soy entirely in response to Trump’s tariffs last month.
Both Senators McCaskill and Blunt have condemned Trump’s
Soybean prices fell more than 5% to the lowest point in two years Tuesday, as escalating trade tension between the U.S. and China dimmed hopes that U.S. farmers might win a reprieve from duties on the crop set to take effect next month.
Prices for grain and livestock also declined as traders bet Chinese tariffs would jeopardize demand for U.S. exports. Commodities from crude oil to copper to lumber also fell.
President Donald Trump on Monday asked his staff to prepare $200 billion in additional duties on Chinese products, four times the amount of the duties his administration announced last week. Officials in Beijing responded to that first round of duties with $50 billion in reciprocal duties on soybeans, pork and other products. China is the largest buyer of U.S. soybeans.
The uncertainty over which tariffs will take effect and when has slowed agricultural trade to a trickle, said Bobby Pelz, a founder of grain brokerage McDonald Pelz Global Commodities LLC.
“Nobody has a clue what to do,” said Mr. Pelz, whose brokerage negotiates grain and soybean sales from the U.S. to China, among other places. “It has hurt the entire grain industry.”
At one point Tuesday, soybean futures had lost more than 7%, hitting their lowest point since March 2016. Wheat and hog prices both fell.
…Longer term, Mr. Velde [a farmer] worries the dispute between U.S. and Chinese officials could push China to seek a more lasting alternative to U.S. crops.
“We know it’s going to hurt us now and the potential of it hurting us down the road is quite high,” Mr. Velde said.